What is Student Loan Deferment? |
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Answer:
Student loan deferment is an option that allows graduates to stop making monthly payments for a specified timeframe. In many instances, students are unable to make the first payment once the grace period concludes. Additionally, graduates may experience financial hardships in the future. To decrease the number of student loan defaults, Federal student loan programs offer a deferment option, wherein qualified borrowers can stop making payments for an approved period. What’s more, interest does not accrue during the deferment period. There are different types of student loan deferments. Undergraduates and graduates enrolled at least half time may qualify for an in-school deferment. However, if the student withdraws from school, or attends less than half time, payments are required after a six month grace period. Another type of student loan deferment is unemployed deferment. Graduates who are unable to find employment or laid-off from their jobs may qualify for this deferment, in which payments cease for up to three years. The most common deferment reason is economic hardship. To determine eligibility, graduates must complete a deferment form and provide income information. Trackback(0)
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