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Student Loans - Why Going Back to School Defers Payment on Student Loans

Student Loans – Why Going Back to School Defers Payment on Student Loans

Once you have graduated from college, probably the last thing you think about is taking more classes. But by resuming your college studies in a new field of study, or by getting an advanced degree in your chosen field, you likely will benefit from student loan deferment. The benefit comes not from getting rid of the debt; instead, the benefit is that you will be afforded more time to resume repaying what you already owe. By not having to make monthly payments, you will have more time to focus on getting good grades and less time to worry about how you are going to make this month's payment on time.

Deciding to request deferment on existing loans: Returning to the classroom after leaving college is one way to put your payments on hold. Deferring college loans while pursuing additional education is a benefit most lenders make available to their customers. Taking advantage of this type of deferment can not only help you afford to go back to college for an advanced degree, but it can also help you get a better handle on your debt and get some breathing room on repaying your bills.

Understand deferred student loan repayment rules: Even if you are mercifully transferring to a new college, you do not always need to start repaying your loans right away. Federal Stafford loans, among others, for the period of time you are registered as a full-time or part-time student. There may seem to be lots of paperwork involved. Sometimes you will be required to fill out and submit a deferment form to notify your lender of your intentions and status as a student. The bank or agency that has lent you the loan will need proof that you are enrolled in class.

Fully complete and submit your loan deferment paperwork: Do not just sign up for random classes and expect to be exempt from making your monthly payment. Take to your school counselor or call the toll-free customer service number on the website of the student lender what you owe money to now. You've got to send them a loan deferment form when you transfer. This informs your previous college and your current college / university of your situation. You do not want your old school to assume anything.

Devote proper time to resuming your college studies: Typically, all students have a 6-month deferred payment grace period that is available after they graduate or drop out of a half-time student status. You can not simply take one class and defer your loans. You have to be making a serious attempt to pursue your educational objectives to get your deferment. Remember: once your grace period expires, your college loans come due and you are expected to make timely payments as you originally agreed.

Bottom line on returning to college to get a loan deferment: So, whether your finances are tight and you are falling behind on making your student loan payments on time currently, or the job market in the near-term does not look promising, you may be well served to return to school to get additional training and educational experience. By going back to school you not only add educational bullet-points that will make your resume stand out from the crowd, but you will get loan repayment relief as well.

Your best plan of action to defer student loans by returning to school is:

  • Determine how and where you will return to college, and make an appointment with that school's financial aid office. Tell them your intentions, your long-term goals, and ask them for their advice. If you are returning to classes as a student, you will need to submit an application for acceptance to their institution. If you are transferring, you will need to submit that same application, but will also need to bring additional paperwork with you.
  • Review your loan documents, your financial aid package you received when first enrolled in college, copies of Federal Stafford loans and all the private loans you signed for and owe money on. Scholars that you still qualify for or Federal Pell grants that are owed you will also need proper documentation.
  • Call your student loan lender as soon as possible and get your deferment forms either e -ailed to you or find their download page on the company website. Complete the form as best as you can, then ask for assistance on totally providing all the information they require.

A deferment on existing student loans remains one of the best ways you can put your student loan payments on hold. As mentioned earlier, deferring repayment of your college loans while pursuing additional education will not only help you afford to go back to college for an advanced degree, but you will also be buying time to get your financial house in order when it comes time again to start repaying your existing student loans.

Source by Steve Johnson

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