When to put your student loans on deferment
Updated on November 20, 2019
An increasing number of graduates are unwilling or unable to tackle their student loan debts due to several reasons, such as unemployment. While federal student loans have several repayment options that favor borrowers struggling to repay their loans, not all can pay back in due time.
This causes borrowers to look for other alternatives that allow them to postpone their payments until they find a better paycheck. Student loan deferment is one option that will enable you to stop making payments on your loan for a certain period.
Unfortunately, student loan deferment extends the time it will take you to pay off your loan, causing you to pay more interest in the long run. Thus, before putting your loans on deferment, it is advisable to exhaust other options available.
When to apply?
Some circumstances that force borrowers to put their loans on deferment are as follows;
• Losing your job (source of income)
• Struggling to meet your basic needs such as food, shelter, and clothing
• To pay off other loans that you have
If you’re unable to pay off your student loans for the long-term, consider going for income-based student loan payments. This plan adjusts your repayments with your income in mind, but it will lower your paycheck.
However, it will take you longer to pay off your student loans with income-based student loan payments, and it increases the amount you owe over time. If you work for the government or in public services, you can opt to go for student loan forgiveness.
This allows you to pay off your debt for a certain period without missing a payment, and after that period, the remainder of your student loans is forgiven.
How to apply?
For federal student loan borrowers, you can apply for student loan deferment through the Federal Student Aid Website. There are various types of deferment available; thus, you should choose the one that you are most eligible for.
At Student Loanify, we help borrowers find student repayment options that suit their career, income, and family. Our goal is to ensure you pay off your student loans on time. Contact us today to get help with student loan deferment.