Unemployed? You May Qualify for Student Loan Deferment
Make Ends Meet While Unemployed by Deferring Your Student Loans
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.
Sources
Astrive Student Loans, http://www.astrivestudentloans.com/repayment_options.html
Chase, https://www.chase.com/ccp/index.jsp?pg_name=ccpmapp/student_loans/servicing/page/servicing_defer
Sallie Mae, http://www.salliemae.com/after_graduation/manage_your_loans/postpone/deferment.htm
Published by Kristy Martz
Kristy is a freelance article and short story writer who has lived in 13 different places. Her nomadic upbringing has given her a wide range of experiences. She managed to juggle a full-time job and two sma... View profile
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- Depending on the lender and type of loan, the student loan deferment period can last up to 3 years.
3 Comments
Post a CommentMary, it's just impossible to plan for something like a heart attack! I surprised they weren't more willing to work with you. I also had Sallie Mae student loans. I was pregnant at the time and knew I would be on short-term disability due to some complications. They were more than willing to defer my loan, but I just requested a reduced payment plan instead.
I was in nursing school and in my 8th month I had a heart attack. I had to stop going until I got better I have sallie mae loans i called them to let them know and I would even send proof when I say noone I mean every person I talked to would not help reduce my payment nor let do a derferment so after talking to over half sallie mae staff one man told me if I sent him a 1000 dollars he would let me send whatever I could every month I said even if I only had 10 dollars he said yes he told me he was a manager he could do that. Im not stupid I told him to send that in writting of course he would not it gets worse Im going to tell the rest on student loan more in detail other site.
Wow, diferment for 3 years? Thanx for the information.