Student Loan Deferment keeps your credit clean

If you find that you are having trouble meeting the financial obligations of your student loans there are a number of options that you can utilize to manage your finances without having it negatively impact your credit rating. One of these methods is known as a student loan deferment.

A student loan can be deferred so that there are no payments required on the loan during a specified period of time. Depending on the type of loan that you have taken out, you may or may not be responsible for interest accruals during the time period of the deferment. This will prevent a student loan default.

In regards to a Federal Stafford Student Loan or Direct Student Loans there are three different ways that you can defer a student loan.

The first is an in-school deferment and you must be enrolled at least half-time. With this type of deferral there will be no interest accruals and no payments are required until after the grace period expires after the student has left school or is no longer attending at least half-time.

In situations in which the student is unemployed, he or she may be able to qualify for an unemployment deferment for up to three years after they leave school. Should the student leave school but find that they are not earning sufficient money to pay for their student loans they may qualify for an economic hardship deferment. To qualify for this deferment the student must not make more money than the low standard of living as determined by the Bureau of Labor Statistics. This student loan deferment is known as an economic hardship deferment.

Under certain other circumstances you may also qualify for a deferment of your student loan for the following reasons:

• Graduate fellowship
• Internship
• Residency
• Teaching in a designated teacher shortage area
• Rehabilitation training
• Temporary disability
• Parental leave (only for individuals who are pregnant are who are caring for their newborn or newly adopted child)
• Public service deferments for the following: Armed Services, Peace Corps and Public Health Service

To apply for a student loans deferment, you will need to complete an application and provide documentation to verify your reason for requesting deferment. For more information, please visit FAFSA. 

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