Are you currently unemployed? Do you have outstanding student loans? You may be able to stop making payments on your student loans for up to 3 years by deferring your loan. A deferred student loan can take away some of the financial pressure during your time of unemployment.
The length of deferment depends on the loan type and lender. For Stafford and Perkins student loans, you may be able to defer payments up to 3 years if you are unemployed or experiencing economic hardship.
Chase is one lender that offers deferment for student loans for unemployed borrowers. There are several criteria that must be met in order to qualify for the deferment. A borrower must be seeking, but unable to find employment. They must also be registered with a private or public employment agency.
Chase offers student loan deferment of up to 3 years if the loan was received after July 1, 1993. During this time, the borrower is responsible for any interest that accrues on their unsubsidized student loans. However, interest will not accrue for subsidized Stafford loans.
Sallie Mae also offers deferment to qualifying unemployed borrowers. Loans that are eligible for deferment include Stafford loans, Parent PLUS loans, Graduate PLUS loans, and federal consolidation loans. During the time of deferment, interest continues to accrue for all but subsidized Stafford loans.
Astrive Student Loans allows those who qualify for deferment to avoid paying on their loans for up to 12 months. If you have loans with Astrive Student Loans, you should remember that interest still accrues on these loans during the time of forbearance.
If you believe you qualify for a deferment due to unemployment, contact your lender. They will tell you if you are eligible and how you can begin the deferment process. You may have to provide documentation of unemployment and your job search history.
Depending on the type of loan you have, you may be responsible for interest that accrues during the time of deferment. This can be quite substantial over a 3 year deferment period. Keep this in mind when planning for your financial future over the next several years.
A student loan deferment will not fix all of your financial problems. However, it will allow you to take one major bill off your mind during your time of unemployment. The money you would otherwise have spent on paying down your student loan can now be used to pay your mortgage and keep yourself in your home instead.
Astrive Student Loans, http://www.astrivestudentloans.com/repayment_options.html
Sallie Mae, http://www.salliemae.com/after_graduation/manage_your_loans/postpone/deferment.htm