Student loan deferment explained

Student loan deferment is an agreement between the student and lender that the student may reduce or postpone repayment of a student loan for a designated period.[1] Deferment or forbearance[2] will prevent the loan from going into default, but may increase the overall cost of the loan.[3] Students may be eligible for deferment while experiencing financial hardship or unemployment.[4] The lender may require valid proof of financial hardship and other financial information when the student applies.[5]

See also

Notes and References

  1. Web site: Deferring payments for school or internship. SallieMae. 28 November 2017.
  2. Web site: Payment difficulties. SallieMae. 28 November 2017.
  3. News: Lanza. Allesandra. 4 Questions to Ask Before Requesting a Student Loan Forbearance. 28 November 2017. U.S. News & World Report. 9 July 2014.
  4. Web site: Deferment and Forbearance. Federal Student Aid. U.S. Department of Education. 28 November 2017.
  5. Web site: Gobel. Reyna. Student Loans: Repayment During Financial Hardship. Investopedia. 28 November 2017.

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