Learn how to manage student loan deferment (debt).

The ordeal of having to deal with student loan debt is a secret to no one since hordes of students struggle with this every year. Fortunately, a little planning can do you wonders. If you are reading this and looking for an excellent way to handle your student loan debt, know that there exists a multitude of options at your disposal. 

The Idea of a Student Loan Deferment:

In simple words, a student loan deferment refers to a way to delay your loan repayments. During this period, if you have subsidized loans, the interest does not accrue. Through a student loan deferment, you can either temporarily stop making repayments or reduce the repayment amount for a maximum of three years. You are eligible for a student loan deferment if you find yourself in the following situations: 

• Studying in a university
• Having financial hardship
• Not having an adequate source of income
• Serving in the military

Consider the following factors before you decide to defer your loans:

• Know that student deferment works well for subsidized loans because the interest on the loan will not accrue during the deferment period. However, this is not the case with unsubsidized loans. 
• If you have a temporary financial setback that you can remedy, go ahead with student loan deferment. However, if you do not think you will be able to make loan repayments any time in the near future, drop the idea of deferring your loans. 
• Also, check if you will be able to make payments of lower amounts. If that is possible, you are better off with an Income-Based Repayment (IBR) plan instead of a student loan deferment. 

Qualifying for a Student Loan Deferment in the following situations:

Here’s what you need to know about qualifying for a deferment for private loans and federal loans: 

Private student loan deferment:

If you want to avail a private student loan deferment, be sure to find out the deferment terms from your vendor since the loan deferment terms of each vendor are different. Depending on the lender, you could avail a loan deferment if you enroll yourself in a university or the army, or if you get a job.

Federal student loan deferment:

If you want to avail a federal student loan deferment, you will need to apply for it. You could get an in-school loan deferment on the condition that you enroll yourself in school at least half-time. However, you will have to check with the U.S Department of Education for the same. Head over to the student aid repayment forms, select the deferment option, and choose from the ones for which you qualify.

Student Loan Forbearance:

Here is another viable way to handle your student loans. If you have trouble repaying your loans, forbearance might be for you. The lender will decide if they want to grant your request for forbearance. This will give you temporary relief from having to make continuous loan repayments. However, you should keep in mind that the interest on the loan will accrue during the forbearance period. 

When you approach your lender and place a request for a student loan forbearance, you will have to explain why you are unable to make the loan repayments. Here are a few scenarios where you could get your forbearance request approved: 

• If you are no longer employed
• If you find yourself experiencing financial setbacks
• If you need the monthly repayment amount to cover your medical costs

If you happen to have availed a loan through the Federal Family Education (FFEL) program from American education services, for instance, you will qualify for student loan forbearance. You can avail the same for Perkins loans and Direct loans as well.

Student Loan Forgiveness: 

Student loan forgiveness seems to be a feasible option for many. However, it is not easily available to everybody. It is not easy to qualify for student loan forgiveness programs. However, there is a wide range of student loan forgiveness programs you ought to check out and see if you are eligible. 

There are some scenarios where you can qualify for a student loan forgiveness program. Here are a couple of such situations: 

• You may avail a student loan forgiveness program if you are an educator. Through a student loan forgiveness program for teachers, you can have up to $17,500 forgiven from your total loan amount. This can be done if you complete five consecutive years as an educator at a low-paying school. 
• You can also avail a student loan forgiveness program if you are serving in the military. Know that there exists a loan repayment scheme for every military branch there is. You can get a part of your loan amount forgiven, depending on your rank. 

Public Service Loan Forgiveness Program:

The Public Service Loan Forgiveness (PSLF) is one of the best-known student loan forgiveness programs. This program aims to specifically assist those who serve in public sector fields like teaching, nursing, and the military, among others. If you want to have your loan forgiven through this program, you will have to first make repayments on your loan for at least a decade. 

Be sure to make use of a PSLF calculator to determine how much of your student loan amount you can get forgiven.