Greetings! If you’re a student struggling to pay off your loans, you’re not alone. Many students find themselves in a similar situation and choose to defer their loan payments. Deferment is a process that allows you to temporarily stop making payments on your student loans. In this article, we will discuss the different types of student loan deferment available to you.
Introduction
When it comes to student loans, repayment can be daunting, especially if you’re not in a financial situation to make payments. Luckily, student loan deferment can provide temporary relief from making loan repayments without risking default. Deferment is an option available to students who need to stop making payments during periods of financial hardship such as unemployment or financial inability to pay. It is important to note that deferment is only a temporary solution, and you will still be responsible for making payments on your loan once the deferment period ends.
What is Student Loan Deferment?
Student loan deferment is a program that allows you to temporarily postpone the repayment of your student loans. During the deferment period, you are not required to make any payments, and the interest on the loan may be temporarily suspended. The deferment program is available to students who are experiencing financial hardship, such as unemployment or financial inability to make payments. The goal of a deferment program is to provide students with temporary relief from making payments without risking default.
Who Qualifies for Student Loan Deferment?
There are several qualifications for student loan deferment. These include:
Type of Deferment |
Qualifications |
|---|---|
In-School Deferment |
Enrolled at least half-time in an eligible postsecondary school. |
Graduate Fellowship Deferment |
Enrolled in an approved graduate fellowship program. |
Rehabilitation Training Deferment |
Enrolled in an approved rehabilitation training program. |
Temporary Total Disability Deferment |
Unable to work or attend school due to a total and permanent disability. |
Unemployment Deferment |
Unable to find full-time employment or work less than 30 hours per week. |
Economic Hardship Deferment |
Experiencing economic hardship or receiving federal or state public assistance. |
Military Service Deferment |
Active duty military service or National Guard duty. |
Types of Student Loan Deferment
In-School Deferment
If you’re still in school, you may qualify for an in-school deferment. You must be enrolled at least half-time in an eligible postsecondary school, and the deferment can last for as long as you are enrolled at least half-time. During the deferment period, you are not required to make any payments, and the interest on the loan may be temporarily suspended.
Graduate Fellowship Deferment
If you’re enrolled in an approved graduate fellowship program, you may qualify for a graduate fellowship deferment. During the deferment period, you are not required to make any payments, and the interest on the loan may be temporarily suspended. The deferment can last for as long as you are enrolled in the fellowship program.
Rehabilitation Training Deferment
If you’re enrolled in an approved rehabilitation training program, you may qualify for a rehabilitation training deferment. During the deferment period, you are not required to make any payments, and the interest on the loan may be temporarily suspended. The deferment can last for as long as you are enrolled in the rehabilitation training program.
Temporary Total Disability Deferment
If you are unable to work or attend school due to a total and permanent disability, you may qualify for a temporary total disability deferment. During the deferment period, you are not required to make any payments, and the interest on the loan may be temporarily suspended. The deferment can last for as long as you are unable to work or attend school due to your disability.
Unemployment Deferment
If you are unable to find full-time employment or work less than 30 hours per week, you may qualify for an unemployment deferment. During the deferment period, you are not required to make any payments, and the interest on the loan may be temporarily suspended. The deferment can last for up to 36 months.
Economic Hardship Deferment
If you are experiencing economic hardship or receiving federal or state public assistance, you may qualify for an economic hardship deferment. During the deferment period, you are not required to make any payments, and the interest on the loan may be temporarily suspended. The deferment can last for up to 36 months.
Military Service Deferment
If you’re on active duty military service or National Guard duty, you may qualify for a military service deferment. During the deferment period, you are not required to make any payments, and the interest on the loan may be temporarily suspended. The deferment can last for as long as you are on active duty military service or National Guard duty.
FAQs About Student Loan Deferment
1. Can I defer my student loans if I’m still in school?
Yes, if you are enrolled at least half-time in an eligible postsecondary school, you may qualify for an in-school deferment.
2. Can I defer my student loans if I’m unemployed?
Yes, if you are unable to find full-time employment or work less than 30 hours per week, you may qualify for an unemployment deferment.
3. Can I defer my student loans if I’m experiencing economic hardship?
Yes, if you are experiencing economic hardship or receiving federal or state public assistance, you may qualify for an economic hardship deferment.
4. How long does a deferment last?
The length of a deferment depends on the type of deferment, but it can last for as long as you meet the qualifications.
5. Do I have to pay interest on my loan during deferment?
It depends on the type of loan you have. Some loans may accrue interest during the deferment period, while others may not.
6. Do I need to apply for deferment?
Yes, you will need to submit a deferment request to your loan servicer and provide proof of your eligibility.
7. Can I still make payments on my loan during deferment?
Yes, you can still make payments on your loan during deferment, but it is not required.
8. Can I defer my private student loans?
It depends on your lender’s policy. Private student loan lenders may offer deferment options, but they may differ from federal loan deferment options.
9. Can I defer my Parent PLUS loan?
Yes, Parent PLUS loans are eligible for deferment if the student on whose behalf the parent borrowed is enrolled at least half-time in an eligible postsecondary school, or the parent borrower meets the qualifications for another type of deferment.
10. What happens if I don’t qualify for deferment?
If you don’t qualify for deferment, you may consider applying for an income-driven repayment plan or requesting a forbearance.
11. How does deferment affect my credit score?
Deferment does not affect your credit score, but late or missed payments can have a negative impact.
12. Can I defer my loans if I’m on maternity leave?
If you’re on maternity leave, you may qualify for an unemployment deferment if you are unable to find full-time employment or work less than 30 hours per week.
13. What is the difference between deferment and forbearance?
Deferment is a program that allows you to postpone your student loan payments temporarily. Forbearance is another program that allows you to temporarily postpone or reduce your payments, but interest continues to accrue during the forbearance period.
Conclusion
Dealing with student loan repayments can be stressful, but deferment is a temporary solution that can provide you with some relief. It is important to understand the different types of deferment available to you, so you can make the best decision for your financial situation. Make sure to apply for deferment as soon as possible so that you can avoid late or missed payments. Remember, deferment is only temporary and you will still be responsible for making payments on your loan once the deferment period ends.
Disclaimer
The information provided in this article is for educational purposes only and should not be used as a substitute for professional financial or legal advice. Please consult with a professional before making any financial decisions.