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Federal Student Loan Deferment

Receiving a college education may be the single most important accomplishment that one may achieve in their entire life time.

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For some students, federal student loan deferment provides an avenue for newly working college students to flourish. Directly exiting college into the working world is a daunting financial, as well as personal, challenge for new graduates. Tacking onto this pressure is relatively immediate, depending on previous personal lending agreements, are the flood of incoming student loan repayment obligations. The average college student leaves postsecondary school with around $25,000 in student loan debt. Couple this information with the 2007 National Center for Educational Statistics fact that the average college graduate earns less than $40,000 annually, and there is no wonder how federal student loan deferment allows recent graduates a chance to gain financial footing in the world.

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A variety of distinctly different methods prove effective in the like goal of deferring student loan obligations.

Federal student loan deferment strategies include:

  • Forbearance for financial hardship such as unemployment
  • Continuing education at the graduate level
  • Entering the armed forces
  • Working within some federally supported loan cancellation programs
  • Consolidating loans with unique terms through private lenders

The US government understands that students often have difficulty paying back their loans, and for this reason, it offers varying forms of deferment assistance and options. Generally, student loan repayment obligations commence anywhere from immediately to one year after leaving school for college students. Understanding the nature and terms of each college aid loan is essential in garnering a clear financial outlook for future debt obligations and deferral options. For those with federal student loans, the opportunity for loan deferment is widely available and implemented by students in a differing number of manners. Assessing which of the following student loan deferment options will best suit each student is a unique and individualized decision at best, however, the following information can be an excellent starting point for exploring further within this site and elsewhere.

Forbearance options, from the U.S. Department of Education, allow students to reduce their monthly loan repayment obligations by suspending the repayment of principle loan amounts. Holders of Direct Stafford and FFEL (unsubsidized) loans are responsible only for the monthly interest during the deferment period. This period can last up to three years, allowing the student to recover financially. To apply for a federal student loan deferment, the student needs to contact their federal loan lender directly. Members of the United States military also prove eligible for special provisions, as stated by the new College Cost Reduction and Access Act enacted in 2007. The Department of Education lifts the standard deferment period of three years of enlisted individuals for the duration of their enlisted term of duty. Of all civilian occupations, teachers receive numerous opportunities to defer, if not outright cancel, all student loan obligations. Generally, teachers employed in federally designated shortage areas or low-income school districts posses the most ability to pursue a variety of these avenues.

Federally subsidized lending companies understand the nature of students recently exiting college and entering the working world. With more and more students attaining college degrees through the assistance of student loans each academic school year, competition for jobs proves fiercer and financial insecurity befalls many individuals. For this reason, the federal government, in cooperation with private lending organizations, offers the aforementioned options to defer student loans from the Department of Education. When expecting financial constraints, acting immediately to pursue options deferring student loan obligations is essential in preventing students excessive financial worry and discomfort. Simple research and information gathering can open a plethora of practical solutions to the student or family facing financial frailty stemming from federal student debt obligations.

Want federal student loan deferment assistance?
Get federal student loan deferment assistance today.