| Whether you've only been out of college a few | | | | § Experiencing economic hardship |
| months and are still looking for a job, or you've just | | | | § In the military and have been deployed |
| lost a job you had for the past five years, you may | | | | When you're in deferment, you'll only be charged |
| not always be fully financially equipped to handle your | | | | interest on your unsubsidized student loans. The |
| student loan debt. When unexpected expenses or | | | | interest on your deferred subsidized student loans will |
| hardships hit, even the most responsible borrowers | | | | be paid by the government. |
| can find themselves struggling to make their student | | | | You can choose to make interest payments on your |
| loan payments. | | | | unsubsidized student loans during deferment in order |
| But the good news is that your federal student loans | | | | to avoid having any accrued unpaid interest added to |
| come with repayment plans and deferment and | | | | your principal student loan balance. |
| forbearance benefits that could help you when you're | | | | For your private student loans, contact your lender |
| having trouble making your monthly payments. | | | | to see if they offer deferment periods under certain |
| To help you avoid getting caught in financial trouble | | | | enrollment, military service, or financial circumstances. |
| with missed payments and defaulted student loans, | | | | Forbearance |
| NextStudent, a leading Phoenix-based education | | | | Forbearance allows you to temporarily reduce or |
| funding company, offers this quick guide to your | | | | postpone payments on your student loans. You may |
| deferment and forbearance benefits. | | | | request a discretionary forbearance in cases of |
| Postponing or Reducing Your Monthly Student Loan | | | | unemployment or financial hardship. Generally, your |
| Payments | | | | lender can grant a forbearance for up to a year at a |
| If you're having trouble affording your monthly | | | | time. |
| payments, don't just ignore your monthly bills; always | | | | When you're in forbearance, you're responsible for all |
| communicate with your lender about your financial | | | | interest that accrues, whether the student loans in |
| situation and ask about your deferment and | | | | forbearance are subsidized or unsubsidized. You can |
| forbearance options. Deferments and forbearances | | | | choose to make interest payments during |
| allow you to temporarily postpone or reduce your | | | | forbearance in order to avoid having any accrued |
| monthly student loan payments while keeping your | | | | unpaid interest added to your principal loan balance. |
| credit score intact. | | | | Avoiding Default |
| Deferments and discretionary forbearances (granted | | | | Just like making on-time car or credit card payments, |
| in cases of financial hardship) aren't automatic. You | | | | timely student loan repayment can be a way for you |
| need to contact your lender to request a deferment | | | | to build credit or improve your credit score. At the |
| or forbearance. You may be required to complete a | | | | same time, every student loan payment you miss |
| deferment or forbearance request form and to | | | | can bring down your credit score. Miss enough |
| submit supporting documentation. | | | | payments, and your student loans could go into |
| Most federal student loans (including Perkins loans, | | | | default, which can cause damage to your credit that |
| Stafford loans, PLUS loans, Grad PLUS loans, and | | | | takes years to repair. |
| consolidation loans) come with deferment and | | | | The key to avoiding default is communicating with |
| forbearance benefits. Some private student loans | | | | your lenders about your financial situation and |
| may also offer deferment or forbearance | | | | requesting a deferment or forbearance if you need |
| periods-you'll need to contact your private student | | | | one. More likely than not, your lenders are going to |
| loan lender. | | | | be willing to work with you to help keep you from |
| Deferment | | | | defaulting by keeping your student loan repayment |
| Deferment allows you to temporarily stop making | | | | affordable, even when you're facing tough financial |
| payments on your student loans. | | | | circumstances. |
| You may be able to request a deferment on your | | | | NextStudent believes that getting an education is the |
| federal student loans if you are: | | | | best investment you can make, and we're dedicated |
| § Enrolled in school at least half time | | | | to helping you pursue your education dreams by |
| § Unemployed | | | | making college funding simple. |