Call a Fort Lauderdale Student Loan Attorney
Student loans often take decades to fully pay off, and it’s not unreasonable to imagine that something may happen which causes the borrower to not be able to make payments for a while. In certain qualifying instances, the borrower may be able to defer their payments for a period of time. A deferral or a forbearance is when you are given permission to stop making payments for a temporary period and then resume doing so at a later date.
If you are struggling financially and find you are unable to make your student loan payments, you should speak with a Fort Lauderdale student loan lawyer and discuss your options in order to determine the best possible strategy for debt relief. Loan Lawyers can provide you with more than 100 years of combined experience to help you pursue the best possible outcome to your struggles. We have successfully helped more than 5,000 clients seek the relief they need when struggling from all types of debts, and we can work with you get back on your feet and on your way to financial freedom.
Don’t wait! Call Loan Lawyers today at (844) 344-4813 to request a free consultation and let us help you manage your student loan debt issues!
When Can I Defer My Loan Payments?
Loan payment deferral is reserved for a select few circumstances of extreme economic hardship or a mandatory duty. However, unlike loan forgiveness which only a select few groups of borrowers qualify for, many other people could qualify for a deferral and greatly benefit from one.
You can defer your loan payments under the following circumstances:
- Unemployment: If you lose your job or are unable to find work, you can apply to defer your loans for a period of time in order to allow you to re-obtain gainful employment and continue to make your payments.
- Military service: Members of the United States military may defer their student loans in two instances. First, if the borrower is deployed on active duty, they may defer their loan for the term of their deployment. Second, they may choose to defer their loans after they have completed their active duty in order to pursue employment.
- Economic hardship: If you are receiving payments under a federal or state public assistance program, you may be eligible to defer your payments for a particular amount of time. This includes the TANF, SSI, and SNAP programs.
- Peace Corps volunteer: Volunteers in the Peace Corps may defer their loans for up to three years in order to complete their service, and some loans may even be deferred for up to six months after service has been completed.
- Internship or residency service: If you are an intern or resident in a medical or dental program, and are working towards completing your medical or dental practice licenses, you may be able to defer your loans because most of these programs pay very little.
Deferral or Forbearance?
A deferral and a forbearance are very similar: both mean you make little to no payment for a pre-determined period of time, and both do not affect your credit rating or count as missed payments, giving you the freedom you need. However, each deferral or forbearance has different qualification criteria, which means you should speak to an attorney in order to learn which option is right for you.
In most cases, if you can take a deferral over a forbearance, you should do so. A deferral may qualify for further assistance, and the federal government may pay the interest on some of your loans over the deferral period. However, a forbearance will continue to collect interest on all types of loans, meaning your overall loan cost will increase in the end.
Get help with your student loan debt and discuss your deferral options: contact Loan Lawyers today!