How to defer a college loan?

How can I convert my bank loan back into a private student loan?

• Here is my situation. Three years ago I had to start paying off my college loan of about $60,000. It was a private loan, and I consolidated it using Sallie Mae with a very high interest rate. My step father suggested that I ask my grandfather (who has excellent credit) to get a loan from Bank of America to fully pay off my balance with Sallie Mae and the benefit would be a much lower interest rate as a bank loan under my grandfather's name. The disadvantages were 1) I had to write checks to my grandfather that he would now use to pay off the bank loan, 2) Since the loan was no longer under my name, my grandfather writes it off in taxes, not me 3) Most importantly of all, now that I have moved out and I'm barely getting by paycheck to paycheck, I want the ability to DEFER this loan but I can't because it's not mine anymore and my grandfather can't and/or won't do that with this bank loan. So... there is the background... Now, my question is this: Is it possible to transfer this loan back to Sallie Mae under my own name towards the purpose of being able to defer? And please let me know how I would go about doing this because I am lost when it comes to this stuff. Thanks for reading

• Answer:

  Your Grandfather does not get a tax deduction for your loan. In fact, the interest you pay him is taxable income to him. Your wish to convert does not exist. This loan is no longer in the educational system. You can ask your grandfather if you can defer with him--essentially asking him to trust you to pay him later even if he needs the money now. Why in the world did you move out when you knew you had this debt to pay? Deferment under the original loan wouldn't have helped your financial situation as the debt would keep growing.