(Closed) Student Loan Deferrment

posted 7 years ago in Money
Post # 3
Member
6394 posts
Bee Keeper
  • Wedding: September 2011

I haven’t done it yet, but I might have to soon. I would honestly call your loan providers. I figured I would just hear a machine with a bajillion options that wouldn’t be helpful, but the people who work at mine are really sweet and they know a ton.

Post # 4
Member
2313 posts
Buzzing bee
  • Wedding: August 2011

Deferment is when you put off beginning repayment. If you’ve made some payments already, you go into forbearance, which will temporarily stop payments but yes, you will accrue interest during that time that you can either pay off when your forbearance period is over or just add to your principal balance. My sister had to defer her payments because she lost her job in DC and is working part time while trying to find full time work, but can’t afford the payment in the meantime. She called yesterday and they put a forbearance on this month’s payment, which is when they were set to begin, and sent her the forms to fill out for unemployment deferment. 

(This is just what I know through Federal Stafford loans; from what I understand they make it pretty easy to defer/forbear if you need to, but private lenders like Sallie Mae make it harder.)

Post # 5
Member
2871 posts
Sugar bee
  • Wedding: March 2011

If you need to do it, i would.  I had to because I lost my job but it really hurt me in the end.  I payed over 5,000 last year towards my student loans and I am still just paying back interest. I havent hit principal yet.

Post # 7
Member
3176 posts
Sugar bee
  • Wedding: May 2011

I did a forbearance and decreased my loans to only pay $40 a month. I had a really low paying job and it was either pay my loans or pay for rent and food. It did make my overall amount increase but I really had no options. Now that I have a job that pays better I can pay over my minimum (which has since increase after ending the forbearance). It sucks to have to increase a loan but sometimes you have to do it.

Post # 9
Member
2090 posts
Buzzing bee
  • Wedding: August 2010

Right now, tons of people are defaulting on student loans (especially private loans), so it seems like some companies are eager to grant forbearance/deferment if it means you’ll pay in the end. If you can afford to pay the interest while your loan is in forbearance, I would definitely suggest doing that. If not, and its deferred for a long period of time and the repayment is based on a shorter period pay off (like, 8 or 10 years, verses 25 years), then they will likely have to recalculate your monthly payment, which will be higher, based on whatever the balance and interest rates are.

If your loans exceed a certain portion of your income, you can apply for Income Based Repayment (IBR), which will limit your monthly payments to a certain amount based on income and family size. There is a lot of good info about the program here: http://www.ibrinfo.org/

Like you, Roxy821, I haven’t even begun to dent the principle yet. If you have multiple loans (including private) and haven’t consolidated your loans yet, I believe the only place still consolidating loans which are both federal and private is Wells-Fargo. Sallie Mae used to do consolidations, but I believe they do not do it anymore. Hope this helps.

Post # 10
Member
3176 posts
Sugar bee
  • Wedding: May 2011

@roxy821: Same thing for me. I have Direct Loans but I also have loans through Sallie Mae, they are freaking killers! My actualy loan will more than double based on interest and I’ll be 40 before I’m able to pay it off 🙁

Post # 13
Member
2373 posts
Buzzing bee
  • Wedding: July 2008

You can defer private loans too (at least sallie mae)  but you need to have an excuse as to why you can’t pay them and there’s some paper work (the forms are somewhere in your account documents). The only reason I know this is because mine were in repayment and  when I went back to school they were automatically deferred again (not sure how sallie mae knew I went back to school, I did fill out a FAFSA, but they are private loans).

 I feel for anyone (including myself! Roxy and I have similar debts) who has student loans, they are rape. It also has always irritated me I never could qualify for financial aid because I was considered a dependent of my parents who make six figures. My parents weren’t paying for housing or my tuition so I was stuck with higher interest private loans.

Post # 15
Member
3176 posts
Sugar bee
  • Wedding: May 2011

@roxy821: Yikes, mine aren’t nearly as bad as that! Sorry to hear it!!

I lowered my Sallie Mae payments for 2 years by doing an interest only payment plan (I think?) again I had to because of my low paying job. Have you spoke to anyone with SM? I know you usually have to wait awhile but I spoke with someone regarding the IBR plan. Turns out I didn’t have enough in loans, you might.

Post # 16
Member
2373 posts
Buzzing bee
  • Wedding: July 2008

@roxy821: sorry.. I meant foreberance. I forget they are different things because they are both expensive!  My minimum payments on my loans are the same as our mortgage and HOA fees combined.

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