Procrastinate a Bit with Forbearance and Deferment
Life happens, and not always as planned. Whether you’re out of work for a season, have unexpected medical bills, or experience financial difficulties, affording your monthly student loan payments can be impossible. That’s why forbearance and deferment options exist.
Qualifying for Forbearance and Deferment to Avoid Default
You may be eligible for temporary relief from your loan servicer if you’re in a situation where you can’t pay what you owe, and if your loan meets certain requirements (e.g. in good standing). If granted, you can stop or reduce payments for a period to avoid defaulting on your loan.
Forbearance vs. Deferment
Forbearance and deferment are essentially the same, except the terms of interest. With a deferment, you’re not responsible for paying accrued interest on federally subsidized loans but will need to pay that amount with forbearance.
Is a Temporary Fix Right for You?
Student loan servicers will push you towards a forbearance or a deferment as a quick fix if you can’t afford payments. Sometimes this is in your best interest, but they won’t always tell you about better alternatives.
The key: If possible, don’t stop paying until forbearance or deferment has been approved.
Our Student Loan Solver team can review your specific situation to see if applying for a forbearance or deferment is your best bet. Many times, a month or two of temporary relief can make a dramatic difference in the ability to continue payments. We can also help weigh the pros and cons of alternative solutions to high or unaffordable student loan payments. Give us a call for a free initial consultation with a Student Loan Advisor today.