Life After College and Forebearance Options
Stay Away from Student Loan Delinquency
Lenders often have programs that will assist you in paying back your college debt. You can delay your payment in one of two ways; deferment or forbearance. Forbearance differs from deferment in that you are responsible for paying the interest that accrues during the period of delay.
You can demonstrate a financial need for your delay of student loan repayment. Lenders are aware of the ever-rising cost of college, and will likely extend forbearance since they want to keep your loan in good standing.
Many federal school loan laws have changed since June 1, 1993 that involved a student's repayment options. Always contact your lender or student aid officer for clear and up to date advice.
Mandatory Forbearance Financial Aid
To qualify for a mandatory forbearance, you must provide the correct documentation and be involved with one of a few select programs.
If you have used up your deferment benefits, such as using all three years in most cases, then forbearance options are a logical next step. However this time you will have to pay for the interest instead of the government picking up the tab.
Being approved for a Department of Defense repayment program has a few forbearance options. Holding a position as working with AmeriCorps for a certain period of time could grant you some time. You must provide documentation of the dates of your service to qualify.
Many young professionals have debt from student loans for graduate school. After graduate school at a university, the student is sometimes required to enter into a residency or internship program. If you do not qualify for deferments, or have used up your benefits, then forbearance can help with your loan.
Lender Options for Repaying College Debt
Most private and non-profit organizations provide forbearance options given you qualify. They are given at the discretion of the lender, so having financial difficulty with documentation should enough to temporarily halt paying back your loan.
Parental Student Loan Deferment
If you are a parent, and have a PLUS Loan, you can get loan forbearance while your child is still attending college. Usually the maximum delay period is 48 months. Other loans, such as the Federal Stafford and other consolidation loans have more strict criteria to be approved for forbearance than PLUS Loans.
