Postponing Student Loan Payments

​Are you unable to make your payment, having hardship, or just need a break from your monthly payments?  What a lot of people unfortunately do not know (which is why people are defaulting all over the United States) is there are postponement options available when one cannot make their payment.  Below is a list of all the postponement options available and what they are typically used for.

Forbearance

Used For: Short term break from payments: 1- 5 months

​When somebody has one or more Federal Student Loans, they have 36 months throughout the life of the loan of forbearance time.  Use this wisely because when used up: you won’t receive any more time.  This is for when the car breaks down, you need a new furnace, or wanting to take that trip you haven’t been able to afford.  To be clear – I don’t recommend putting off debt to go on a trip but let’s be real – people do it.  With Private student loans, there are forbearance options in some circumstances.  It comes down to the lender, and what they may offer.  Call your lender and see what they can work out for you.  Federal student loans always have 36 months of forbearance time – another advantage to Government-issued loans.

Deferment:

Used For: Long term break from payments: 6-12 months

With federal student loans, there are many deferment options available for all different kinds of situations life can and will throw at you and affect you longer than you’d like.  The great thing about this is there are options in place to help people out in these instances.

Primary Deferment Options Available:

Economic Hardship Deferment 3 Year Cap I Reapply Every 12 Months

The Economic Hardship deferment is available for those financially struggling and could use a break for more than just a few months upon qualifying.  A large reason as to why people default is because they are unaware of this particular (and the Unemployment) deferment and then go 270+ days without paying their loans, then head to a Collections Agency.  Use this time wisely as there is only 36 months throughout the life of the loan to use this particular deferment.  To qualify, a debtor must be receiving some type of public assistance (Either Federal or State) or be full-time working status but receiving equal to or less than the federal minimum wage.

Unemployment Deferment3 Year Cap I Reapply Every 6 Months

Anyone who is working less than 30 hours a week consistently can and should qualify for the unemployment deferment.  With this deferment, a borrower only have 3 a years of utilization throughout the life of the loan before it is exhausted and no longer a privilege.  This is valid for six months at a time, then one must reapply.

Unemployment Deferment3 Year Cap I Reapply Every 6 Months

Anyone who is working less than 30 hours a week consistently can and should qualify for the unemployment deferment.  With this deferment, a borrower only have 3 a years of utilization throughout the life of the loan before it is exhausted and no longer a privilege.  This is valid for six months at a time, then one must reapply.

Grace Period DefermentNo Time Limit I Reapply Every 6 Months or 9 Months (See Below)

A person gets typically a six-month grace period for Direct Subsidized, Unsubsidized, and Parent PLUS loans following graduation or falling below half-time enrollment. It is important to note there is no grace period for Grad PLUS loans.  In the case of Perkins loans, there is a nine-month grace period.

During the grace period with loans that are subsidized, the government will pay the interest.  This is not the case for unsubsidized federal student loans.​

Graduate Fellowship DefermentNo Time Limit

A graduate needs to have acquired a Bachelor’s degree to qualify for the Graduate Fellowship deferment, as well as be pursuing a graduate fellowship program full time, which includes elsewhere than the United States of America.  To be clear, medical school students who are doing residency or interning will not qualify.  The nice thing about the Graduate Fellowship deferment is there is an infinite time span accessible for those that qualify.

Disability Rehabilitation Deferment – No Time Limit

For those that become disabled for a certain amount of time, this deferment is there while rehabilitation is sought after so no payments are expected while a debtor is improving health-wise.  There is no time limit with this particular deferment.

Military Deferment – No Time Limit

First and foremost – if you could potentially qualify for this particular deferment – thank you so very much for your service.

If a person is called to active duty rather it be Armed Forces, or the National Guard or Reserves during a war – they may be approved for this deferment for as long as they are serving.

Who Can Request This Deferment?

The Federal student loan services are somewhat lenient on this: a family member, someone who is associated with the borrower that the lender deems a reliable source can qualify the debtor for this particular deferment.  Documents are not required for the first year of the Military deferment as well. Post active duty, there is an additional deferment available that stands 180 days for the veteran to get back in the groove of life and back on his or her feet.

In Conclusion

There are options put in place for any situation life may throw at people. Student Loan Assist has been working tirelessly to make sure we counsel people to always be in some time of active arrangement to significantly lower the horrifying default rates throughout the United States.  People just aren’t educated on the above options, and we are here to change that and keep borrowers like yourself on the right track.

Call Us Today!

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