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What You Need to Know About Putting Off Your Student Loans

Most students and recent graduates put off paying back their student loans for two reasons. They are in school or are having trouble making payments after graduation because they don’t have enough money.

Let’s look at student loan deferment in more detail, including when it might be the best choice and how to do it.

What is putting off a student loan?

Student loan deferment means that you don’t have to make payments on your student loans for a short amount of time. You can put off both federal and private student loans if you meet the specific requirements of the lender.

Students can choose to put off their payments for a number of reasons, like going to graduate school, doing an internship, getting a fellowship, living somewhere else, and more. If you meet the requirements, you won’t have to pay on your student loans for a certain amount of time.

If you are eligible for federal student loan deferment, you should pay attention to the type of loan you have. Federal Direct Subsidized loans do not build up interest while they are in deferment, but interest will still build up on Federal Direct Unsubsidized Loans and private student loans.

TIP: “Forbearance” on a student loan is pretty much the same as “deferring” your student loans, but it usually only applies to private student loans where payments are put on hold because of financial problems. If you put your federal student loans on “forbearance,” interest will be added to them whether they are subsidized or not.

When should you put off paying a student loan?

There are many times when you might want to put off paying back your student loans. For example, you might not be able to make payments if you go back to school and aren’t working. With student loan deferment, you don’t have to pay for some of these common things:

1. Putting it off for school

Starting school again is one of the most common reasons to put off paying back student loans. As long as they are in school at least half-time, most students can get a graduate school deferment. Once you’ve told your loan company that you’re going to school half-time and that you qualify, you won’t have to pay your loan until the end of the deferment period.

But interest will still be added to most loans, so you may end up paying more on the loan if you put it off for a few years to go to school. During your deferment, you can always choose to make payments when you can. This will help you save money on the overall cost of the loan.

2. Putting off a decision to do an internship, fellowship, or residency

You might be able to get your student loans put on hold if you are doing an internship, fellowship, clerkship, or residency. Once you’ve been accepted into the program, you’ll need to contact your loan servicer to see if you qualify. You may need to prove that you have a Bachelor’s degree or that your program will lead to a degree or certificate. If you are eligible, you don’t have to pay back your loans while you are in the program. Many lenders will let you reapply for deferment every year or so as long as your program is still going.

3. Putting Service Off

People who are in the Peace Corps or the military on active duty can often get their loans put off. As an example, College Ave gives people who are called to active duty for more than 30 days a chance to put off paying their rent. The Peace Corps can do the same kind of work. For each of these services, you will need to show proof that you are a member of the organization and, if you are on active duty, that you are doing your job. Once you meet the requirements, you won’t have to pay back your student loans until the deferment period is over.

4. Delay for being out of work

Even though federal loan relief for the COVID-19 pandemic as a whole is ending, people who are unemployed or have lost their jobs can ask their lenders for a deferment or forbearance. Delaying your unemployment benefits can help you get a better handle on your finances while you look for work.

Since the last time you paid your federal loan, your life may have changed. You might have gone back to school or started a fellowship, and now you don’t know what to do about your student loans. Or maybe you’re still having trouble paying your bills because of the pandemic. No matter what your situation is, you should look into all your options for delaying your student loans.

5. Temporary problems with money

If you are having trouble making ends meet for a short time, you might be able to get your student loans put on hold. If you experiencing employment difficulties or large medical expenses, you may also be eligible for deferment. Deferment can give you the time you need to get back on your feet and get control of your finances if you’re having trouble with money. To qualify, you may need to show proof that you are having trouble paying your bills. Forbearance is another option for people who are having trouble with money.

How to put off paying student loans

You’ll need to talk to the people who handle your student loans if you want to put off paying them. Depending on what kind of loan you have (federal or private), you may have more than one servicer, and you’ll have to contact each one separately. You may also need to give your lender all the proof he or she needs to see that you qualify. This could include proof of enrolling in school, getting a fellowship, being in the military, or being unemployed.

Many people, from graduate students to people in the military, can get a deferment at College Ave. We can help you figure out how to put your student loans on hold. If you’re looking for alternatives to deferment, our student loan refinancing may help you get a lower interest rate and lower your monthly payment. Check out our prequalification tool if you want to start the process of refinancing your student loans. Contact our customer service team right away if you need help with student loan deferment.

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