Student loan deferment is an agreement between the student and lender that the student may reduce or postpone repayment of a student loan for a designated period.[1] Deferment or forbearance[2] will prevent the loan from going into default, but may increase the overall cost of the loan.[3] Students may be eligible for deferment while experiencing financial hardship or unemployment.[4] The lender may require valid proof of financial hardship and other financial information when the student applies.[5]
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References edit
- ^ "Deferring payments for school or internship". SallieMae. Retrieved 28 November 2017.
- ^ "Payment difficulties". SallieMae. Retrieved 28 November 2017.
- ^ Lanza, Allesandra (9 July 2014). "4 Questions to Ask Before Requesting a Student Loan Forbearance". U.S. News & World Report. Retrieved 28 November 2017.
- ^ "Deferment and Forbearance". Federal Student Aid. U.S. Department of Education. Retrieved 28 November 2017.
- ^ Gobel, Reyna. "Student Loans: Repayment During Financial Hardship". Investopedia. Retrieved 28 November 2017.