Life does not always deal the hand you the hand you want. Despite the best laid plans for graduating college and paying back your student loans, there are things that can happen that derail your plans. If you are a victim of unfortunate circumstances, you may be able to get more time to pay back your student loan in the semblance of a hardship deferment for student loans.
What is a hardship deferment?
A hardship deferment for student loans allows you to postpone the repayment of your student loans in certain, qualifying circumstances. The hardship deferment is provided for one year at a time for a maximum of three years. During the postponement, interest will not accrue on subsidized loans and you will not be considered in default and thus can maintain your credit rating.
What qualifies for a hardship deferment?
To qualify for a hardship deferment for student loans you must experience:
- Economic hardship
- Fulfillment of military service obligations during a war
- Active-duty fulfillment during war or peace times
Documentation is required to prove the above situations and to be granted a hardship deferment. Loans that have already been defaulted on will not qualify for a hardship deferment, so it is important to contact your lender as soon as possible to work out the arrangement and terms for your hardship deferment for your student loan.
The most important thing is to be honest
Student loans are some of the easiest to obtain and the most flexible to repay. Lenders understand the risk they are taking providing students with money and because of such they are willing to work with you to increase your odds of actually paying back the money you borrowed to get your education. When you call to request a hardship deferment, you will be required to be open and honest about your scenario.
If you are approved, you will receive an agreement letter with the terms of the arrangement. If you find that you can not start paying on the agreed upon date, make sure to contact your lender quickly and work out a new agreement.