Once you take a student loan, it becomes really hard to pay it back. There can be many problems which come in your way when it comes to its return. Sometimes someone can get hurt in a car crash, get injured in some accident, suffer from some disease and thus can’t work. The loan companies never care about such mishaps, you have to pay them the money back in anyway.
Student loan deferment
It is true that the student loans are quite a bit different from other kinds of loans. If you are in any of the above situation, you can ask for the student loan deferment. It means that the company does understand your problem and it even allows you not to pay the loan for a while until the things get better with you.
There is another generosity which they show particularly on the subsidized loans; it is that they don’t really add the interest to the actual amount of the subsidized loan.
If the loan is not subsidized, the interest rates will keep getting added to the amount but it is on you to make the interest payments. If you don’t, it’s all right even then.
Applying for Student Loan Deferment
The company will get to know about your problem only then when you will apply for the student loan deferment. It is available for a number of reasons but they must be genuine ones. It also depend on the times and type of the loan you took.
The most common and typical problems which the companies normally comes across is the economic hardship and financial imbalance. It generally happens because of unemployment. The disable people, pregnant girls, workers of the volunteer organization, teachers and people of this sort can also apply for the student loan deferment.
It does seem complicated but it isn’t actually, if you are college going and have got stuck in any sort of problem, there are a lot of companies which can help you out. You just need to find a suitable one for yourself.
Student loan forbearance
You have got another option other than student loan deferment, it is student loan forbearance. Both of them are quite similar. You can get your student loan canceled; it means that you won’t have to pay even a single penny. It happens when you become permanently disabled or the college from where you were seeking education gets closed before you got done with your graduation etc. in all such situations the student loan gets entirely canceled.
Two or more loans
If you have more than one loan, then you will have to apply separately for the deferment. It is to keep in mind that mere applying for the deferment doesn’t really stop your payments. You have to pay until they approve you. The company takes a few weeks to complete all the procedures, and then it eventually approves you.
When you apply for the deferment you have to fill some additional documents and papers for declaring your bankruptcy. It is important for making them believe that your student loans is really causing problem for you. If forbearance is possible, you can even apply for the total cancellation of the loan.
by Gemma Maddock