Whether you’ve only been out of college a few months and are still looking for a job, or you’ve just lost a job you had for the past five years, you may not always be fully financially equipped to handle your student loan debt. When unexpected expenses or hardships hit, even the most responsible borrowers can find themselves struggling to make their student loan payments.
But the good news is that your federal student loans come with repayment plans and deferment and forbearance benefits that could help you when you’re having trouble making your monthly payments.
To help you avoid getting caught in financial trouble with missed payments and defaulted student loans, NextStudent, a leading Phoenix-based education funding company, offers this quick guide to your deferment and forbearance benefits. Postponing or Reducing Your Monthly Student Loan Payments
If you’re having trouble affording your monthly payments, don’t just ignore your monthly bills; always communicate with your lender about your financial situation and ask about your deferment and forbearance options. Deferments and forbearances allow you to temporarily postpone or reduce your monthly student loan payments while keeping your credit score intact.
Deferments and discretionary forbearances (granted in cases of financial hardship) aren’t automatic. You need to contact your lender to request a deferment or forbearance. You may be required to complete a deferment or forbearance request form and to submit supporting documentation.
Most federal student loans (including Perkins loans, Stafford loans, PLUS loans, Grad PLUS loans, and consolidation loans) come with deferment and forbearance benefits. Some private student loans may also offer deferment or forbearance periods—you’ll need to contact your private student loan lender.Deferment
Deferment allows you to temporarily stop making payments on your student loans.
You may be able to request a deferment on your federal student loans if you are:
