i need some info on deferment. on what cases one can defer? actually i owe some student loan. i've been paying the installments timely, but i am afraid - might miss in future. so i would like a deferment. any hint is appreciated.

buddy

[4u.bryan]

Deferment is nothing but temporary postponement of repayment under some specific circumstances and for some special cases. Deferment options differ for various student loans. The alternatives that are offered are –

• For Federal Perkins loan, subsidized FFEL and subsidized Direct Stafford Loans, the borrowers need not pay the principal and interest during the deferment period.
  
• For unsubsidized FFEL and unsubsidized Direct Stafford Loans and PLUS Loans the borrower should pay the interest during the deferment period, though the principal is not charged. The borrower can stop paying the interest also, in that case the unpaid interest is added with principal and as a result the total debt amount increases rapidly.

Deferment is not approved automatically. The borrower should apply for it with all the documents that prove his eligibility. A borrower may like to defer for cases like -

• Economic hardship
  
• Physical disability
  
• Unable to get a full time job
  
• Engaged in some specific profession

The approval of deferment is regulated by the date of disbursement of the loan, the type of loans one owes etc. So the loan holder is the best person to be consulted before applying for a deferment.

Points to Remember

• The documents that you submit with your application are checked thoroughly to decide whether your deferment application will be sanctioned. Make sure all the documents are error-free.
  
• Some people stops paying their installment once they have forwarded their application. This is not right. You should continue to pay your installments unless you are notified that your deferment has been approved.
  
• Deferment is not possible on a defaulted loan.

For any more information please feel free to ask in the forums.

Regards,
Bryan