Student Loan Deferment – What It Is and How To Prevent It
A lot of students get through college by taking up scholarships, awards and student loans. The last option usually is the most painful in the pocket since borrowing money doesn’t really bode well for those who cannot find decent jobs after graduation. Yes, a college degree is important and one must sacrifice in order to achieve this. Good thing there’s the option of student loan deferment that can considerably help a student pay his way through debt slowly but surely.
Those who have student loans need a temporary reprieve from their debt and they can have it by filing for a deferment. It is considered an entitlement which means that as long as you are complying with one of the conditions or terms set by the lenders, you have the right to defer your loan at least once during the repayment term. The length however will be determined by the reasons why your load will be deferred.
So, how does one go about filing for a student loan deferment? Well, first of all you have to figure out whether it is necessary for you to file for a deferment. If you have an unsubsidized student loan, the interest will build during your deferment which makes the principal higher when repayment begins again. But if the deferment is for economic hardship, see whether an extended or graduate repayment plan would decrease your payments enough to make applying for a deferment unnecessary.
There are 14 different types of deferments and their availability is determined by when the loan originated. For example, loans that we filed after July 1, 1992, those who borrowed may file for a loan deferment if they are going back to school or they are unemployed and experiencing economic hardships. They may also do so if they are participating in a graduate fellowship or are enrolled in rehabilitation training. But for loans before 1993, a whole new variety of deferments are available just ask your lender so that they can help you pinpoint which is accessible for you.
You also want to check the specific requirements for the type of student loan deferment that you are filing for. You must also prepare the documents because the lender will be looking through it before granting you the request. The documents include proof of unemployment or any other proof, certificates that signify your participation in a graduate fellowship program or special rehabilitation training.
Student loan deferment is pretty much a good way to get help for your debt however you still have to keep in mind to really save up because once your deferment ends, you will be paying still. Opt to pay the interest to make it easier for you.