Having Trouble With your Student Loan Payments? Look Into your Deferment and Forbearance Options

If you just graduated in May with federal Staffordfinancial hardship.
student loans, you may be having to adjust yourÂ
monthly budget to accommodate new student loanWhich student loans are eligible for deferment and
payments as your Stafford six-month grace periodsforbearance?
end sometime this month. If you’re still lookingMost federal student loans Student Loan Consolidation,
for a job, or if you’re at an entry-level salaryStafford loans, PLUS loans, and Grad PLUS loans) are
right now, you may not have the money you’reeligible for deferment and forbearance benefits.
going to need to meet a new monthly student loanSome private student loans may also offer deferment
expense.or forbearance benefits—you should contact
Whether you’re a recent graduate or anyyour private student loan lender.
parent or student loan borrower, if you’re havingKeep in mind that if you’re considering an
trouble meeting your student loan payments eacheconomic hardship deferment or forbearance, you
month, NextStudent, a leading Phoenix-basedneed to contact your lender, even for your federal
education funding company, urges you to contact yourstudent loans. Hardship deferments and discretionary
lenders about your deferment and forbearanceforbearances are generally not automatic.
options. Deferment and forbearance periods can allowÂ
you to temporarily reduce or postpone the monthlyAm I being charged interest while my student loans
payments on your student loans without puttingare in deferment or forbearance?
yourself at risk for damaging your credit score orYes. Interest charges continue to accrue on your
defaulting on you student loans.student loans even if they’re in deferment or
Âforbearance. You’ll be responsible for the
What are deferment and forbearance benefits?interest on your unsubsidized student loans (such as
Deferment allows you to temporarily stop makingunsubsidized Stafford loans) that are in deferment and
payments on your student loans. If you’reon any of your student loans, whether subsidized or
unemployed or experiencing financial hardship, youunsubsidized, that are in forbearance. The government
may be able to request a deferment, for up to a yearwill pay the interest on any of your subsidized student
at a time, up to a total of three years over the life ofloans (such as Perkins or subsidized Stafford loans)
the student loan. You must contact your lender tothat you have in deferment.
request an unemployment or hardship deferment, andAny unpaid interest that accrues during a deferment or
you may need to fill out a deferment request form.forbearance period will be capitalized and added to
Forbearance allows you to temporarily reduce oryour principal student loan balance for you to repay
postpone payments on your student loans. You mayonce you go back into repayment. Even if your
be able to request a forbearance if you’repayments are postponed during a deferment or
unemployed or experiencing financial hardship. Youforbearance period, you can always choose to make
must contact your lender to request a hardshipinterest payments to avoid having accrued interest
forbearance, and you’ll typically need toadded to your principal student loan balance and
complete a forbearance request form. You may alsocapitalized.
need to submit supporting documentation.NextStudent believes that getting an education is the
Generally, a lender can grant a forbearance for up tobest investment you can make, and we’re
a year at a time. Unlike unemployment or hardshipdedicated to helping you pursue your education
deferments, there is no three-year cumulative limit ondreams by making college funding simple.
discretionary forbearance periods granted due to