Deferment Period

A deferment period is the length of time during which you can postpone making payments on your student loans. This can be a helpful option if you are experiencing financial hardship or if you want to focus on other financial goals, such as saving for a down payment on a house.

There are two types of deferment periods:

• Grace period: This is the period of time after you graduate from school or leave your program during which you are not required to make payments on your student loans. The length of the grace period varies depending on the type of loan you have.
• In-school deferment: This is a type of deferment that allows you to postpone making payments on your student loans while you are enrolled in school at least half-time. The length of the in-school deferment period varies depending on the type of loan you have.

If you are eligible for a deferment period, you will need to submit a request to your loan servicer. You will need to provide proof of your eligibility, such as a copy of your student loan statement or a transcript from your school.

Keep in mind that deferment periods can have a negative impact on your loan balance. During a deferment period, interest will continue to accrue on your loan balance, which can increase the amount of money you owe in the long run.

If you are considering a deferment period, it is important to weigh the pros and cons carefully. Make sure that you understand how a deferment period will affect your loan balance and your monthly payments. You should also make sure that you are eligible for a deferment period before you submit a request.

If you are unable to make your student loan payments, there are other options available to you. You may be able to qualify for a forbearance, which is a temporary suspension of your payments. You may also be able to get a loan modification, which can lower your interest rate or monthly payments.

If you are struggling to make your student loan payments, it is important to talk to your loan servicer. They can help you explore your options and find the best solution for your situation.