If you’re like me, you’ve finished the bulk of your post high-school education and are thankful for your degree, but now looking at the looming prospect of paying off those loans you accumulated while at the institution of your choice.
While everyone prepares you for your step into the ‘real world’ after high school and college, they don’t always tell you that you won’t get your dream job right after you graduate. That leaves you with a beginning job and not enough money to always pay the bills and pay your student loans.
So if you’re like me and looking for ways to extend or defer that loan payment cycle just a little bit longer until that job that you’ve been hoping for comes around the corner, here are a few options you have to defer your loans.
According to Stafford Loan, loans can be deferred for the following reasons:
Stafford and Perkins Loans:
Principal and interest payments may be deferred while the borrower is:
- Attending school at least halftime.
- Unemployed (up to three years).
- Studying in an approved graduate fellowship or rehabilitation program for the disabled.
- Experiencing economic hardship (up to three years).
If you are not eligible for a deferment of your loans, you may still be eligible for ‘Forbearance’ of your loans.
Forbearance is a way to temporarily postpone or reduce payments for a set period of time. This typically takes place because the borrower is experiencing financial difficulty, but can occur for any of the following reasons:
- Partial Disability
- Other documented hardship
If your student loans are through Direct Loans, you can access the deferment forms page for more information and applications for deferment and forbearance.
While I am an advocate of living debt free and paying off your school loans as soon as possible, I also understand there are some of us that are ‘just getting started’, living abroad, or going to graduate school (or all three) and need the extra help for the time being.
Struggling with student loans or have questions? Leave a comment below.