Deferring Student Loans – There’s No Escape!

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Deferring Student Loans

For those students who have student loans, there is a clear difference between the arrangements for repayments options. For many, there will be a need to make payments as they go along through schooling which means budgeting will be vital to stay ahead of the interest. For others, deferring student loans may be ideal as long as you are aware they will need to be taken care of after school. For many, this method will be the go during the college financial juggle. Which of course means there will be a need to start paying them down ASAP after school. Closure might well be more difficult, with other responsibilities requiring financing as your life and career progresses.

Keeping Up With Payments

Clearly, for a standard type of loan, making regular payments is important and falling behind is probably not too clever of an idea. However, When it comes to student loans you cant just claim bankruptcy and walk away. They cant be included in a BK. They will also affect your credit score, potentially garnish your taxes return, even actual wage garnishment from your hard earned paychecks, not to mention that in some states your driving privileges can be revoked for failure to pay.  Once you start sliding down that slippery slope, you are truly likely to hit larger problems along the way.

There are relief programs and options available that can stop or at least help you from falling further. in case you ever find your self in a situation like that Student Loan Consolidation can help in this situation, but the likelihood is that you will face interest rate penalties – and then again, you are in a difficult position and that might be your best – indeed the only option.

For those in the easier position with Deferring Student Loans (like the Stafford Loan), not only are there no repayments while in school, but there is usually a period between graduating and repayments starting – often of up to six months which is referred to as a “grace period”. This can be a real bonus, as you get the opportunity to start earning and settling into work before you start paying off those debts from your college years.

Following The Stafford Loans Rules

It’s also worth bearing in mind with a Stafford Loan that you have certain requirements to keep up if you want to maintain that preferred status. For instance, if you drop out of school, the loan will need to be repaid. If you have to, it’s better to drop down to part-time and keep in school, as this usually enables you to hang on to the preferential status of the deferred student loan – a real benefit to your financial health and cash flow! With a Stafford Loan, there are a couple of possibilities for you to consider when you are looking for one. In some cases, funding can be arranged through private funding and on other occasions, you will be able to get one of this type of deferred student loan through your school. Both of these are Stafford Loans and have the benefit of later repayment.

Then There’s The Perkins Loan

In some cases, for those students who are less attractive to the lenders of a Stafford Loan, a Perkins Loan might be available through the school. These are quite difficult to get, as there is only a certain amount of government funding available. But if you feel that you might have the challenge to get a standard Stafford Loan, then this might be worth considering.

Whichever type of loan you choose (maybe is chosen for you), the time of retribution will come along. For those who prefer regular payments and little or no debt at the end, the hard work will have to be carried out around your college study timetable. For those who wish for a bit of financial space whilst in school, deferring student loans will be the option to choose, with later repayment required. Don’t worry though, you may even qualify for income-driven repayment plans or 100% Forgiveness of the debt.

Give us a call today! A trained “Guidance Counselor”  can help you see what options are available to you and your situation.

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