Get A Student Loan Deferment: Don’t Sweat Your Loans In Rough and Tough Times
When you need a student loan deferment, it’s often because you’ve fallen on some bad times. Whatever the reason may be, you just can’t seem to make those payments and rather than fall into default, you need a deferment to help you out. If you’re unsure of how a deferment is going to help you, what it entails and how you go about asking for it, then this article is just for you.
Bad things can happen when you least expect it to including when it comes to the money sector in people’s lives. A person may lose their job or suffer a serious illness; they may have had someone close to them die. Yet, no matter the reason, financial problems are bound to creep up, casting shadows on a large aspect of their life. Along with the stress of these situations, add in a student loan. This is when you should be looking for a student loan deferment.
It’s not uncommon for people to become overwhelmed by their debt so don’t feel bad if you do. You may be unable to pay all your bills on time, if at all. The first bills to be tossed aside are the student loans. After all, no one can toss out the electricity, gas or his or her grocery bill. While it’s not right that you need to prioritize what bills get paid, it’s called life and sometimes there’s nothing else that you can do but prioritize the bills. Of course, if you want to pay all your bills and don’t want to worry with the consequences of not paying your loans, you should considering getting a student loan deferment.
What Is A Deferment?
When you’re unable to pay your student loans, consider speaking with your student loan lender about a deferment. This is when monthly payments are postponed for a specific amount of time (generally six to 12 months). Of course, you will still be reliable for the interest but you can add that to the overall loan amount rather than paying for it during your deferment. Yes, you’ll pay more for your loan in the long run but you’re not in default, which would cost you even more.
When Can You Ask For A Deferment
When are you able to request for a student loan deferment? Typically, the only time you can get a deferment is when you are facing very hard financial times. If you’re unemployed, you can request for a deferment. Deferments are also granted to disabled students. Of course, your particular situation will determine if you’ll qualify for the deferment.
Now deferments are not just granted to students who are having problems meeting their monthly payments. Students who have the Federal Stafford Federal Perkins loans (which is the majority of students) are able to reap the loan deferment benefits. You won’t have to pay back this loan and its interest while you are going to school; you also won’t have to worry with it for about six months after you graduate or leave school. If the loan is subsidized, no interest will be accrued on the principal amount while you have a student loan deferment.
How To Apply For A Deferment
The best way to determine if you can qualify for a deferment is to speak with your student loan lender. You’ll be asked to fill out an application, which your lender will review. Not every applicant will be qualified for a deferment. Make sure you show your lender that you truly need the deferment so they grant one to you. When you submit the deferment request, you’ll be asked to submit information as to why you need it. This could be in the form of current pay stubs or other financial hardship proof. If you’re going to school at least six semester hours, this can also be proof for your lender that you need the deferment.
Until you get word about the outcome of your student loan deferment request, continue making your student loan payments. If you’ve been approved for a deferment, you can stop making those payments. However, if you quit making them and the deferment is denied, you may default on your loan.