Student Loan Deferment
7 Questions About Federal Student Loan Deferral!
Student loan deferment is perhaps one of the most important benefits that you will have when you have a federal student loan deferral that is in your name.
But while this process can certainly be a lifesaver, you will need to understand some basics of the direct loan deferment process in order to use it effectively.
7 Student Loan Deferment Question And Answers!
Federal Loan Deferment Options For:
- fafsa deferment
- sallie mae deferment
- department of education deferment
- us direct student loans and more
Question 1: What is a Deferment?
When you use a deferment, you end up postponing the payments until a later time. This is typically only done on a few payments. All interest will stop on these payments as well.
Question 2: How Does Student Deferment Compare With Student Loan Forbearance?
The biggest difference between the two is that with a deferment the interest is not collected on a deferred payment. With forbearance, interest continues to accumulate on this debt. There may also be additional fees associated with the forbearance.
Question 3: What Types of Loans Can I Get a Deferment On?
Different loans have different rules for loan deferment. What you will want to be sure no matter if it is a direct loan deferment or another form is that you understand that there are different stipulations associated with them.
The following styles of loans can have a deferment:
- Perkins Loans
- Stafford Loans
- PLUS loans
- Select Private Loans
Question 4: What Reasons Can I Defer a Loan For?
Depending on how your loan is written, there may be a variety of different reasons why you can defer your loan. While there are a variety of options you have, the following are perhaps the most common reasons you will find:
- Continuing Education
- Military Service
- Illness or Disability
Question 5: How Long Can I Defer Payments For?
This will vary based on the reasons why you are requesting the deferment. If you are attending school, it will typically occur after you have graduated. In other cases, you will have up to 36 months that you can defer your payments for.
Question 6: If I Consolidated Loans, Can I Still Defer Payments?
Typically, this will be up to your lender. But if you have done this through a federal program, then you will be able to still have these benefits. However, if your loan is federally secured, but handled through a private lender, there is a chance you might not still have this benefit.
Question 7: How is the Deferment Process Started?
To begin this process, you simply need to contact your lender. They will provide you with the best way to obtain a form and go through the process. Make sure you have supporting documentation and a valid reason for requesting a deferred payment from your lender.
Remember that this process is designed to help you. Be sure you have the all the information you need readily available as it will be required by your loan provider to help you go through this process. A good idea is to gather the documents for your student deferment loan and then begin the application process.
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