The Ultimate Guide to Qualifying for College Student Loan Deferment
Student loan deferment is a popular option for borrowers seeking temporary relief from their loan payments during challenging times or while pursuing higher education. In this ultimate guide, we'll walk you through the eligibility requirements, application steps, and key considerations to help you qualify for college student loan deferment.
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Understanding Loan Deferment
Loan deferment is a period during which borrowers can temporarily postpone their federal student loan payments. During deferment, interest does not accrue on subsidized loans, such as Direct Subsidized Loans and Federal Perkins Loans. However, interest will continue to accrue on unsubsidized loans, such as Direct Unsubsidized Loans and Direct PLUS Loans.
Eligibility Requirements for College Student Loan Deferment
To qualify for loan deferment, borrowers must meet specific eligibility criteria. Some common reasons for deferment include:
Enrollment in an eligible college or career school at least half-time
Enrollment in an approved graduate fellowship program
Unemployment or inability to find full-time employment (up to three years)
Economic hardship, including Peace Corps service (up to three years)
Active duty military service or post-active duty deferment (varies by service type)
How to Apply for College Student Loan Deferment
To apply for loan deferment, follow these steps:
Contact your loan servicer: Reach out to your loan servicer to discuss deferment options and obtain the necessary application forms.
Gather supporting documentation: You'll need to provide proof of your eligibility, such as proof of enrollment in an eligible program, unemployment, or military orders.
Submit your application: Complete and submit the deferment application, along with the required documentation, to your loan servicer.
Continue making payments: It's crucial to continue making payments until the deferment has been granted to avoid delinquency or default.
Pros and Cons of College Student Loan Deferment
Before applying for loan deferment, it's essential to weigh the potential advantages and disadvantages.
Pros
Temporary relief from monthly payments
No interest accrual on subsidized loans during deferment
Cons
Interest accrual on unsubsidized loans
Extended repayment period, potentially increasing the total amount paid
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Qualifying for college student loan deferment can provide valuable financial relief, allowing borrowers to focus on their education or navigate difficult financial circumstances. By understanding the eligibility requirements and following the application process, you can take advantage of this beneficial repayment option. Remember to explore other repayment solutions, such as income-driven repayment plans or loan forgiveness programs, to find the best fit for your unique financial needs.
There is a lot to be gained from our free general financial aid advice, but it’s also a very individual process. If you have remaining financial aid questions, email us to discuss more or book an individual session.