College Loan Consolidation, Federal Loan Consolidation, Private Loan Consolidation, Student Loan Consolidation

America's Top Student Loan Provider

Deferred Student Loans - Make Sure You Understand The Rules
Getting to college, saving the money and earning it as you go is only a part of the story. Most students will borrow at least some of the cash they need.

Once the classes have finished and it's time to get out into the real world, it's also time to decide how you are going to handle your deferred student loan into the future. You don't want a cloud hanging over you forever, nor do you want to miss then fun your new earning power gives you.

So what's the deal then?

Let's just look at what a deferred student loan is all about. Whilst some student loans are deferred, you need to realize that many require payments even while you are still at college, which as you might already realize, is like topping up a water barrel that has the plug already out at the bottom.

Question is, can you put money in at the top fast enough to stop your barrel becoming empty?

So, if you can, it might be a great idea to have a loan, like a Stafford loan that needs no repayment until graduation is over, often with a 6-month grace period as well, to get you started in your job and new home etc.

Whatever the benefits of this are, there are rules upfront. If you leave college, or do too few hours of class, for example, you may well be required to pay back all you have borrowed right away. From this point of view, so long as you stay enrolled in the college that you have chosen, or a similar qualifying one, you will be OK

In this way, the loan is regarded as a deferred student loan.

With a Stafford Loan, there are two ways that it works. Sometimes the deferred student loan is offered by the college itself. The alternative is where private funding is arranged, by a specialist in student loans and guaranteed by the federal government. Repayment is the same in both situations and the loan remains payable under the terms of the agreement.

An alternative, the Perkins deferred student loan, comes through the college and has government funds to back it and is focused on those who cannot afford a loan from any other sector.

You need to remember that there is a range of schedules for deferred student loans that are not as 'deferred' as you might want. Getting into one of these without the right plan going forward will give you a tough time, so make sure that you realize fully what you are getting into.

You see, as an example, a 'Federal Direct Parent Loan for Undergraduate Students' start their repayment demands within a couple of months of classes starting!

This is not really one of the deferred student loans that you would want to take, if you are in the emptying that water barrel situation. If you do find you have one of these loans, it's vital to get your budgeting and cash flow well organized well before you start to fall behind.


Article Title : Deferred Student Loans - Make Sure You Understand The Rules
Comment not found for this article.

Related articles
• Consolidate Student Loans - How it Works
• Understanding Student Loans
• Facts About Student Loan Consolidation
• Stafford Loans For Your College Funding
• How to Determine Which of the 8 Types of Student Loans is Best For You

Share this story:
  • BlinkList
  • blogmarks
  • Digg
  • Facebook
  • Google
  • Sphinn
  • MySpace
  • NewsVine
  • Simpy
  • StumbleUpon
  • Technorati
  • E-mail this story to a friend!
  • Print this article!
  • Faves
  • Furl
  • Netvouz
  • Slashdot
  • Spurl
  • Yahoo! Buzz

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!
My private loans had a 15% interest rate and I had called EdFed to see what they can do for me. The woman that I was working with started an application for me and ran my credit to see what my interest rate would be and its actually 8.6% I was so happy. Thank you for your help.
- Kathryn B.  Atlanta, GA
* Your Name: * Your E-mail Address:

We respect your privacy.
* Your Friend's name: * Your Friend's E-mail address:
Include a Message:
+ Privacy Policy

Student Loan Consolidation Info - How to Choose the Right Loan Company

This column is sponsored by Granted, America's top job search engine. 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.

read more
Schools Will No Longer Receive Paper FAFSA Forms
(September 20, 2007)

news desk
Stafford Loan Payment Calculator
PLUS Loan Payment Calculator
Loan Consolidation Payment Calculator
Glossary of Terms
Loan Comparison Chart
Scholarship Search
If you are unhappy with your current interest rate and/or lender, contact an expert at EdFed today to find out how you can begin saving money by consolidating.
US School Directory
Comprehensive List of Schools at which EdFed Assists Students.
EdFed is a FFELP lender with lender identification number 834241.
© Copyright 2020 EdFed. All Rights Reserved.

Home · About Us · Contact Us · News · Sitemap
Career Advice · Tell a Friend · Privacy Policy · Resume Service
Resume Distribution Service · Post Resume · Job Search Course
Sign up for the latest news on student loans.
Email Address:
+ Most Recent Newsletter
+ Newsletter Archives