If you're having trouble repaying your student loans, you may be eligible for various forms of student loan deferment, which would allow you to postpone your payments for a specified period of time. But it's your responsibility to contact either your lender or the organization servicing your loan to check if you qualify for such payment relief. Otherwise, you could be charged late fees.
Here are some of the reasons for deferment under which the law permits you to postpone repayment of your student loans. Remember that this only applies to federal student loans, such as Stafford loans or PLUS loans.
Typically private loans may offer a deferment option; however, loans secured from private sources, such as banks, typically may not have military or economic hardship payment relief as part of their repayment terms. The terms of deferment do vary per lender and are included in the terms of the loan. Citizens Bank offers an affordable Citizens Bank Student Loan™ to students enrolled in school at least half-time. The Citizens Bank Student Loan offers deferred payments until 6 months after graduation or when the student drops below half-time status.
You should note that for subsidized Stafford loans, no interest will accrue during the period of student loan deferment. But for most other federal loans, interest will continue to accrue on your unpaid balance. If you do not pay that interest during the deferral period, it will simply be capitalized, or folded into the outstanding principal due on the loan. For private loans some lenders require interest payments while in-school and others may offer deferred. Citizens Banks Student Loan offers the option to defer interest and payments until 6 months after graduation.
Check out our student financing resources, so you have access to all of the student loan information and tools that you need. If you have more questions about financing, call a student loan specialist at 1-888-411-0266, and we'll help walk you through the process.