Deferment doesn't mean you don't have to pay!
However not everyone qualifies for deferment. There is a deferment threshold for your monthly income and you should not exceed it. It is all explained in the application form. If you have already started repaying your student loan you can ask for a deferment application form at any time. On the other hand if you are not, you can ask for the deferment after graduating before you start paying the loan. You can also ask to prolong the deferment after the set period of time is over.
You can apply for a deferment if you are:
- in school, at least halftime (you must supply the information from your school whether you are a half time student or more, as well as if your school or college is eligible. Lenders can also ask some additional information…)
- unemployed (you need to document your state and you must be in active search for employment)
- suffering economic hardship (working less than 30 hours per week, receiving social welfare)
- unable to work or attend school for at least 60 days to recover from the illness or injury or if you have developed the disability after obtaining student loans
- pregnant and with complications or have a spouse or dependent that requires at least 90 days of nursing or similar care that prevents you from working full time)
- in military
There are other ways too
If by any chance you don’t fall into any of these categories, consider some alternatives like loan consolidation which restructures your payments, forbearance which is another way of postponing your payment but the interests accrue whether your loan is subsidized or not. Federal loans offer an option of loan cancellation for full-time teachers in a low-income school.
Never ignore your student loan, no matter how difficult situation you are in. Every missed payment will leave a mark on your payment history for future lenders to see. Making small payments is better than avoiding them! You can also restructure your loan, decrease your monthly payments, which does extend the payment period, but at least it keeps you a responsible borrower.