How Do I Defer Student Loan Payments

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: You can defer payments on federal student loans under select circumstances, including military service, unemployment and economic hardship. As for private student loans, check with your specific lender, as the terms of private student loans can vary from lender to lender. Typically, unless you have a subsidized federal loan, the interest on the student loans will continue to accrue while in deferment.

If you are unable to make your student loan payments, and deferment is an available option for you, deferring your student loan payments is a better choice than letting them go into default. 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.