Most
lenders offer deferment and forbearance periods
with student loans. You should explore
deferment first, as it contains more favorable
terms for subsidized loans.
Deferment – granted
by lender for periods of continued enrollment
or other special circumstances as defined by
lender; postpones repayment up to 12 months;
interest paid by government on subsidized loans
but continues to accrue on unsubsidized loans;
contact your lender for specific eligibility
requirements and processes.
Forbearance – granted
by lender for extreme financial hardship or in
certain instances when deferment isn’t
available; postpones repayment up to 12 months;
interest continues to accrue even on subsidized
loans; contact your lender for specific eligibility
requirements and processes.
Additional information can be found at http://www.finaid.org/loans/default.phtml |
