Q: I just lost my job, and won’t be able to make my student loan payments. My friends have told me to have my student loans deferred, how do I go about doing this and should I go about doing this?
A: Student loan deferment is somewhat of a hot topic right now, (as I’m sure you can imagine) with the economy in the gutter and the current status of job market, many are finding that they just simply can’t make their student loan payments.
You can defer payment on federal student loans under select circumstances, including military service, unemployment and economic hardship. Private student loans however, are postponed by “forbearance” and the terms of that are set by the student loan lender.
Obviously you are going to want to try to avoid delaying student loan payments if you can, the reason being that student loan interest continues accruing unless you have a subsidized federal loan.
To qualify for unemployment deferment on federal student loans, you need to demonstrate that you’re looking for work. You may also qualify for economic-hardship deferment if your income is below about $16,000, or you get public assistance or you work in public service.
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