Delay or Postpone Your Student Loan Repayment
The Option of Deferring
When you finish your graduate study, and student loan repayment is on the horizon, there are some situations where you will not have to pay anything or only have to pay interest. These deferments are awarded to federal loan debt including Direct and FFEL Stafford, PLUS and all consolidation loans. This means you can speak to your lender about deferment programs for FFEL Loans, or directly with the Department of Education for Direct Loans.
In School and Part-Time Programs
It is commonly accepted that student attending a four year college or university will not have to start paying back student loans while they have a status of at least a part-time student. Your school must certify that you are actually a student taking this minimum number of hours.
There is no time limit for in-school and part-time deferments. You can stay in school your whole life and not have to pay back any loans, but there are limits on how much you can take out so unfortunately you cannot live the college life forever.
Deferment for those Unemployed and with Economic Hardship
To apply for deferment based on your economic situation, you must apply every year and prove why you deserve to have your repayment stalled. Unemployment is one criterion, but you must also have earnings under the low standard of living as determined by the U.S. Bureau of Labor Statistics.
The laws have changed for people with student loans depending whether the loans where taken out before or after June 1, 1993. Check with your lender for specific information. There are other forbearance options that may apply to you.
Teacher Deferment Options
As we all know, a teacher's salary is not competitive in most parts of the U.S. Paying back a loan for 4-6 years of college study can be made easier with programs designed to fill the need for teachers in needy areas of the country while financially helping the teacher. These areas either have a shortage of teachers, or have special course or grade specific needs.
You must fill out an application and it must be certified by the principal of the elementary or secondary school where you plan on teaching. There is a maximum deferment period of three years. Check with your lender for any changes in the federal student loan laws.
Full Time Graduate Fellowship Deferment
In exchange for teaching or research in your related field of study, you can receive a graduate fellowship deferment. You must apply each year and be recommended by an institution of higher education. Seek advice from professors, student aid counselors, and the dean or your university.
Student Aid with an Internship or Residency
After your schooling at college, your job or profession may require you to perform a certain number of hours as an intern or resident. This could also be considered continuing education and on-the-job training. Many professionals must complete this step before having their own private practice as do many dentists, therapists, lawyers, etc.
Serve the Public and Benefit Financially
Public Service and Volunteer work may give you some time without having to pay back student loans. Some of the organizations include:
- Peace Corps
- US Armed Forces
- National Oceanic & Atmospheric Administration (NOAA)
- Certain Tax Exempt Organizations Deemed Acceptable by Dept. of Education
- Officer of the Commissioned Corps of Public Health of U.S.
There is a limit of three years that you can defer your student loans via public service. This usually includes any combination such as a full time two years in the US Army and one year in the Peace Corps.
Loan Help for People with Disabilities
In the unfortunate case that you may become disabled and unable to work for more than 60 days, or you need to care for a disabled spouse or dependant for more than 90 days, then you may be eligible for deferment. A doctor must recertify your condition every six months. If you condition become a permanent disability, then you can apply to have your student loans repayment cancelled.
Deferments for Mothers, Pregnancy, and Parental Leave
You can apply for a deferment to repay your student loans if you are currently pregnant, caring for a newborn child, or caring for a newly adopted child. A doctor must certify your pregnancy or child caring situation, and you will need a statement of adoption from the adoption agency for an adopted child. You have a maximum of 6 months of loan deferment for each parental leave instance, with unlimited instances. This applies whether you are unable to attend school or work. If you are in school, contact your student loan aid office for additional help.
