AdministratorCan you defer your student loans?
Student loan deferment lets you stop making payments on your loan for up to three years, in some cases, but it does not forgive the loan. You must apply (and qualify) for deferment unless you are enrolled in school at least half-time. Interest on federally subsidized loans does not accrue during the deferment.
How long can I defer my student loans?
You can defer federal student loans only for so long — in most cases, the maximum is three years total. To apply, send your student loan servicer the appropriate application and any necessary documentation, like proof of unemployment benefits.
What are two ways to postpone payment of a student loan?
The two main ways to delay payment on your student loans are through deferment and forbearance. With both methods, you are basically putting off making payments on your loan. The difference is that deferment can cost less than forbearance.
What happens to the loan amount when you defer a student loan?
If you have other types of loans, the interest will accrue while the loans are deferred. At the end of the deferment period, the accrued interest will be added to the principal balance.
Does deferring loans hurt credit?
A student loan deferral doesn’t directly impact your credit score since it occurs with the lender’s approval. Student loan deferrals can increase the age and the size of unpaid debt, which can hurt a credit score. Not getting a deferral until an account is delinquent or in default can also hurt a credit score.
How do I put my student loan on hold?
Private student loans are not eligible for federal deferment or forbearance programs. But some private lenders will let you postpone student loan payments temporarily if you run into financial hardship. This process is typically not automatic; you’ll need to apply online or by calling your student loan servicer.
What are the disadvantages of deferring student loans?
There are also drawbacks to student loan deferment, particularly if your loans aren’t subsidized by the federal government. The interest will continue to accumulate at the regular rate and then get added to the total of the loan.