Deferring Your Stafford Loan | 03.05.09

Posted in Repayment By Student Loan Network Staff

Doesn’t it feel like you’ll be married to your student loans….forever? Student loans last longer than most marriages these days. Till Stafford do us part is a sad reality.

My friend Stephanie has some huge loan amounts to pay down. She jokes that the light at the end of the student loan tunnel has blown out on her. Poor Steph. She even has private loans to contend with. It’s just awful for her and I know she’s not alone.

For those of you who have both loan types I know you are struggling to survive. Pay the rent, buy food, make your utility bill payments, or pay down your student loan. I know which one on that list would be my last priority. Of course the problem with simply not paying your loans is that it damages your credit score, and that can impact the interest rate on other loans you are paying. Instead of burying your head in the sand in hopes of the problem just going away you should place your loans in a deferment state.

Most people don’t realize they have 3 years worth of deferment eligibility attached to their federal loans. There is an economic hardship deferment and a straight forbearance benefit attached. The economic hardship deferment is the better of the two options as any subsidized loans in your bundle will not accrue interest during the deferment period. Your lender will examine your debt to income ratio to see if you qualify.

A forbearance is also good, as it gets the job done, but interest accrues on the entire loan amount. Every student is eligible for a forbearance

So be responsible and utilize the benefits that come with your federal loan, that’s what they’re there for.

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4 Responses to “Deferring Your Stafford Loan”

  1. Juan says on July 25, 2010 at 10:19 am:

    I agree with Dan Blingo, this website is useless. It will be nice if we were told to whom we can contact for each of our lenders.

    Reply To This Comment
    • Evan Jacobs says on July 26, 2010 at 3:52 pm:

      For federal loans: (800) 848-0979

      For private loans, you'll have to figure out what bank you are borrowing from and look up their number. We provide information, but it is not our responsibility to manage your loans for you.

      Reply To This Comment
  2. dan blingo says on March 11, 2009 at 6:13 pm:

    I wanted to get my loans defered but seems that not even on the deferment form do you provide an address. I have been looking for this address for hours and I’m pretty pissed. Thanks for being so lame.

    Reply To This Comment
  3. Beth says on March 6, 2009 at 4:28 pm:

    Hello, I was wondering if I have already deferred my loans under economic hardship am I still eligible to defer them again if I join the peace corps? Is there an overall maximum number of years you can defer them? I started my deferment in December of 2008.

    Reply To This Comment

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