Student Loan Payment Deferment
Student Loan Payment Deferment
If you’re having trouble making your monthly student loan payment, it’s likely that there’s a deferment option that will work for you. Call your loan servicer and ask questions about deferment options. If you qualify for a deferment, it will stop those payments from coming due for a certain period of time. You should know that interest does accrue on subsidized loans when they’re deferred, but if you don’t pay off the principal of your loan within six months after school or training ends then all of those accrued interest charges will be due immediately at the end of that six-month period unless Congress extends the grace period again as it did in 2010 with Public Law 111-226 § 1177 (126 Stat. 1665).
When you have a student loan, deferment options are available for qualified borrowers.
If you have a student loan, deferment options are available for qualified borrowers. Deferment is not available for people who are in default (not able to pay back) on their loans. Deferment is only available for qualified borrowers and does not have to be repaid during this time period. To qualify for deferment, one must be:
- Unemployed or in financial hardship (such as being unable-to-work due to illness). If you’re receiving unemployment compensation from an agency such as the state unemployment office or the federal government, you may qualify for deferment based on your current situation.
- In school at least part-time while maintaining satisfactory academic progress (as determined by the school). This includes graduate students who were previously enrolled but discontinued their studies temporarily and now wish to re-enroll full time without having any of their previous coursework counted toward their degree program requirements when determining eligibility for financial aid programs such as FAFSA/FAFASA Parent Loan Forgiveness Program (PLFP) benefits; or
- A spouse who has been unemployed and receiving alimony payments from court order(s) requiring spousal support orders issued prior December 31st 2016 that meet certain criteria outlined within each state’s divorce law codes which specifically outlines these types of payments being considered tax deductible expenses that can then reduce overall taxable income levels thus lowering total amount owed over time – if applicable – under certain conditions specified by each individual state’s laws regarding taxes payable annually regardless whether they itemize deductions versus claiming standard deduction amounts allowed based upon marital status type among other considerations
Deferring payments means that you don’t have to make your monthly payment
Deferment is a way to temporarily stop making payments on your student loan. If you’re in school, actively serving in the military or working at least 30 hours per week, your loans will be deferred until you graduate (or leave school), begin active duty service or work full-time again.
If you fall behind on payments during deferment and believe that this is due to extenuating circumstances, contact your loan servicer directly and explain why they shouldn’t count the missed payment against you.
Interest doesn’t accrue on subsidized loans when they’re deferred.
If you are eligible, subsidized loans don’t accrue interest while they’re deferred. This is because the government pays the interest on a subsidized loan while you’re in school.
To be eligible for a subsidized loan, you must:
- be enrolled at least half-time in an eligible program (for example, some graduate school programs might not qualify)
- meet certain income requirements based on your family size and if applicable, your status as an independent student
There are deferment options for people who are unemployed or experiencing financial hardship.
If you are unemployed, or experiencing financial hardship, there is an option for a deferment. If you are attending school full-time, or are in a graduate program and have no income, there is also an option for deferment.
If either of these options apply to you, contact your loan servicer immediately so they can assist with the application process!
Deferment is also available for people who are in certain types of graduate school or certain other types of work training programs.
In addition to the standard deferment options, there are several other types of deferments available. These include:
- Deferment for graduate school
- Deferment for work training programs
- Deferment for unemployment
- Deferment for financial hardship
Call your loan servicer and ask questions about deferment
If you have questions about what deferment is, the eligibility requirements, or how to apply for it, contact your loan servicer. The following are some questions you should ask:
- What are my options for deferment?
- What steps do I need to take in order to apply for a student loan deferment?
- How long will my deferment last if I am approved?
- If I am denied a student loan deferment, will my monthly payment increase?
There’s probably a deferment option that will work for anybody having trouble with their monthly student loan payment
There’s probably a deferment option that will work for anybody having trouble with their monthly student loan payment. If you are unemployed or experiencing financial hardship, you may qualify for deferment. If you are in certain types of graduate school or certain other types of work training programs, you may also be eligible for deferment.
There are many options for you to avoid student loan default when you’re struggling to make the required monthly payments. If you’re in a situation where you are unable to make your monthly payment, call your loan servicer immediately and ask about deferment options. You may be eligible for one of several types of deferment or forbearance. Keep in mind that interest will accrue on subsidized loans while they’re deferred, so this must be considered when deciding whether or not it makes sense for your situation. The only way out is through education, so get started today!