Student Loan Consolidation - Student Loan Deferment and Forbearance

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Student Loan Consolidation - Student Loan Deferment and Forbearance

Deferment
Deferment allows you to temporarily postpone payments on your loan. If you have a subsidized loan, including Perkins Loans, interest won’t be charged during the deferment. If your loan is unsubsidized, you will be responsible for the interest on the loan during the deferment.

Forbearance
If you are temporarily unable to meet your repayment schedule but are not eligible for a deferment, you may receive forbearance for a limited and specific period. During forbearance, your payments are postponed or reduced. Whether your loans are subsidized or unsubsidized, you will be charge interest. Forbearance may be available because you are:

Unable to pay due to poor health or other unforeseen personal problems
Serving in a medical or dental internship or residency
Making federal student loan payments that are equal to or greater than 20% f your monthly gross income.

It is important that you contact your lender about deferment or forbearance before you fail behind on your payments. If you wait until you are behind, you may not be eligible. Continue making your payments until your deferment or forbearance is approved.

In addition, the fat that you are in a forbearance or deferment arrangement may be reported on your credit report and may be considered negative. It may, however, keep you out of default, which can be very expensive and will worse for your credit rating.

Source: The ABC’s of getting out of debt - Sutton, Garrett

Student Loan Consolidation - Student Loan Deferment and Forbearance

Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.