09.19.08 | I can't make my Stafford Loan payment
As the economy continues to spiral downward at a faster rate than mighty Titanic it ’s not surprising to hear that students can not make their payments. My friend Melody is a recent college graduate and has $40,000 in student loans from Northeastern. She has been unable to land a job since she graduated in May. With her six month grace period about to expire she asked me, what do I do? After telling her to take a deep breath I advised her to request a deferment from her lender.
Stafford loans hold up to three years worth of deferment time. You can place your loans in either an economic hardship deferment or a forbearance. The big difference between the two is that if you qualify for a deferment no interest accrues on the subsidized portion of your loans. In a forbearance status interest accrues on the entire amount.
How do I qualify for deferment?
1. enrollment in school at least half-time as defined by your school (this is not counted against your three years)
2. inability to find full-time employment (up to three years)
3. economic hardship (up to three years)
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