By the time you have graduated from college, it might be too late for you to get assistance with student loans. However, there are still ways you can defer your loans – one of them being to look into deferment outside of your school’s financial aid office by signing up for a private loan company or a lender. This article will help educate you on how student loan deferment works and what options there are for deferment.
How Student Loan Deferment Works
If you are concerned that your current student loan payment is more than what you can afford, the best option may be to defer the loan so that it’s not due for 3 years. This process can make it easier to maintain a low monthly payment. In order to do this, there are some requirements that must be met in order to qualify.
Student loan deferment is a provision in the Higher Education Act that allows students to apply for loan forgiveness. This provision became law in 2007. In order to qualify, you must: be enrolled at least half time and have made 120 qualifying payments (on-time) on your federal student loans.
What Options Are There for Student Loan Deferment?
Student loans are an important financial commitment for students. However, deferment offers a way for you to temporarily stop payments on your student loans. Here is a list of some options that are available to avoid student loan debt:
There are many options that you have with student loan deferment. You can request an income-based deferment, a non-recourse program, and a subsidized repayment program. The most common programs are the income-based deferment and subsidized repayment programs.
Common misconceptions about student loan deferment
People get student loans for different reasons, so it’s important to understand that not all students need to worry about student loan deferment. In fact, only a few students will actually qualify. That said, if you are one of the many people who do have a need for loan deferment, there are some common misconceptions about what it is and what it isn’t.
When would I be able to defer my student loans?