A student loan deferment is a form of temporary waiving of your federal student loan. By applying for a student loan deferment, you will only be able to postpone reimbursing your scheduled payments only for a limited time. This does not mean that you will be exempted from paying your full debt.
Another thing you must be aware of before committing to a student loan deferment is that this waiving form only postpones your payments, but does not affect the interest. Furthermore, when applying for a student deferment loan, the interest will still accrue. At this point, you can either pay off your interest or postpone it for a later time.
Note that if you decide to proceed on this path, once the deferment is approved, your rates will be a lot higher than usual.
Because we know how hard it is to apply for a student loan deferment or what is the difference between a deferment and forebear, we have strived to gather only the most relevant data and put it in a user-friendly format.
The student loan deferment has been defined as being a temporary postponement of your principal, and, in some special cases, of your interest.
Furthermore, depending on what type of federal loan you have applied to, the Federal Government may pay off your interest for the rest of your deferment period. These are the major circumstances in which the Government will pay off the interest of your loan:
However, should you apply for an unsubsidized loan, the Federal Government will not pay the interest on your behalf. Here are the types of unsubsidized loans for which the Government will not pay off interest:
Note that in order to become eligible for a such a waiving, certain conditions must be fulfilled. Depending on which type of student loan you have applied for, the Federal Government may approve or deny your temporary postponement.
Furthermore, applying for a student loan deferment does not mean that you should cease to deliver your scheduled payments. Until the deferment is approved, you should continue making the payments on time, or else you will be deemed as delinquent and lose the loan.
Below, you will find the major eligibility conditions based on the type of student loan you have applied for:
You may become eligible for the student loan deferment under the following circumstances:
You can become eligible for the student loan deferment under the following conditions:
Apart from the student loan deferment, there is another type of waiving. The second form is called a forbearance, and it is, generally, sought by applicants who did not qualify for the student loan deferment.
The major difference between a deferment and a forbearance is that a student loan deferment can be approved for an extended period, while the forbearance has a limited availability (no more than 12 months).
Furthermore, in the case of a deferment, depending on which type of loan you apply for, the Federal Government may pay the interest for you. On the other hand, if you apply for a forbearance, your scheduled payments will be postponed, but you will still need to pay the interest.
As in the case of deferment, there are many types of forbearances, and the conditions vary according to their nature.
The first type of forbearance is called discretionary because it relies solely on your lender’s willingness to grant you the forbearance. Furthermore, this type of forbearance can only be solicited in specific circumstances such as illness or financial hardship.
The second major type of forbearances bears the name of mandatory. Compared to the discretionary forbearance which relies on your lender’s willingness to grant it, the mandatory forbearance must be granted if the solicitor fulfills the eligibility criteria.
Below, you will find the complete list of criteria which are required in order to qualify for a mandatory forbearance:
Before applying for student loan deferment, you should make sure that you fulfill all of the eligibility conditions posted above. If that is your case, then you may take the first steps to obtaining financial aid for your student loan. Another important aspect to keep in mind is that working with your school’s Financial Aid office or with your loan services is paramount to your deferment approval.
Always investigate alternatives: do I qualify for the student loan deferment or for the forbearance? If everything is in order, here’s what you will need to do in order to apply for the deferment:
If, for some reasons, you are not capable of applying for the student loan deferment, you can try to apply for a forbearance. Here are the steps you will need to take in order to apply for this form of financial aid:
Having all the facts set on the table is always an important aspect. However, when it comes to dealing with your student loan, the necessity of covering every aspect of the topic increases exponentially. Another aspect, which is of paramount importance, is the way in which you choose to communicate with your loan handler.
If you’re a student enrolled in a college or any other form of education, please take all the time you need in order ask your Financial officer all the questions related to your student loan deferment. Furthermore, you should also take into consideration the fact that not all loan servicers you will be dealing with won’t be that understanding when it comes to reimbursing periods.
Also, there is another thing you should consider before taking up a student loan deferment. Before postponing your scheduled payments, make certain that the deferment of the forbearance has been approved.
If you decide to stop making your payments before either of the two waiving forms have been approved, you will be labeled as a delinquent, and you would have defaulted the loan.
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