Direct Loans Deferment – What You Should Know

If you are experiencing difficulty with making multiple payments on multiple government loans each month, one of the first things you should consider is consolidating your loans. This is a great option to help avoid falling behind on payments because it not only combines all your loans, but lowers the interest rates and makes it so that you only have one payment due each month, instead of two or more. Another option that helps people who are having difficulty making loan payments is to apply for a direct loans deferment. This enables you to put the payments on hold for a certain amount of time. If you choose this option, you should know that the interest rates will also stop, meaning that you are not at all required to make payments during this time.

If you think the above options might be helpful to you, you may now be wondering if you’re eligible. Well, almost every student loan offers some sort of deferment option, including private loans. For the loans that are through the government, such as the Stafford, PLUS, and Perkins all offer this service. However, there are some stipulations – if your loans are subsidized loans, you are eligible for a complete deferment; unsubsidized are only eligible for partial deferments, meaning that you will be required to still make payments on the interest, just not the loan amount itself.

Many students take advantage of the deferment opportunities, especially when continuing their education into graduate school or if they find it difficult to land a professional job. Also, students who decide to serve with the military and some government organizations are also advised to use this option.

Getting a deferment is actually an easy process. You simply need to contact your loan lender and fill out a form, which is usually available online. When you application is received you will either be accepted or denied. Most people that are approved are given three years of deferment. Remember, you are eligible to get a deferments even if your loans are consolidated.

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