Notice: Undefined index: articledetail in /home/utils/securefiles/securecode/utl_article.cls.php on line 643 Loan Deferment | EdFed.com
America's Top Student Loan Provider
You are automatically entitled to a student loan deferment if you meet certain conditions, and if you do qualify, your normal monthly payments get suspended. The interest charges accruing on those student loans are either paid by the government or paid by you, the borrower; it just depends on the type of loan.
A deferment is generally granted up to three years for each type of deferment and there are a variety of qualifying circumstances. Most of you already know that if you continue your education, let's say by taking classes in a graduate program, you'll have in-school status, which is one way to defer your student loan payments. You can also obtain a deferment based on being unemployed. To qualify, though, you must have been registered with an employment agency and you must have made at least six attempts in six months to actually get a job. (In other words: no sitting around watching soap operas all day, and then asking for financial relief.)
There is also an economic hardship deferment for which you might qualify. If you are on public assistance—for instance, receiving food stamps or other government or state aid—you are eligible for a student loan deferment, and you meet the federal definition of truly experiencing economic hardship. Even if you are working full time, you may qualify for a student loan deferment on the basis of economic hardship. Full-time employment is considered working 30 hours a week or more, and to qualify for a hardship deferment even though you're working, your income must be below certain guidelines—essentially you can't earn above the poverty level for a family of two.
Also, if you are working full time and you have a high debt-to-income ratio, you might qualify for a hardship deferment. According to the Department of Education, their definition of having a high debt-to-income ratio means your monthly income minus your student loan debt is less than $2,420 dollars. If you do the math, you'll see that the government is using a formula where your income works out to be about 220 percent of that poverty guideline that I mentioned before, the $1,100 a month figure. So if you're earning less than $13,200 annually (with two people in your household), you are going to meet the criteria and will qualify for a deferment.
Article Title : Loan Deferment
Comment not found for this article.
Share this story:
EdFed introduces… Awareness… Learnal
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!
How EdFed Helped others!
I had been interested in consolidating my student loans for a while when I was contacted by a loan representative from EdFed. She was able to tell me what my interest rate would be and how much I would save. She explained everything in detail and I recommend calling to see what they can do for you. - Sean R. Colorado Springs, CO
Student Loan Consolidation Info - How to Choose the Right Loan Company
The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.
Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.
You can complete your application for consolidation online or over the phone in minutes; our consolidation specialists will be able to answer any questions you may have about the consolidation process.