How to defer a college loan?

How long can a student loan be deferred?

• I am not attending college for the spring 2010 semester because I am moving to and looking for a job in another state. I will, however, begin classes again in fall 2010 at another university. Because this means an 7-8 month absence from college the student loan Whigs have determined I must begin making payments on my loan in July 2010, regardless of the fact I have not yet graduated and will not until 2012. I was told I can apply for a deferment once I begin classes again, but does this mean I can defer payment until graduation or only for a certain amount of time? Additionally, if I cancel payments to my current university, will the unused amount on my student loan be removed from my debt since I do not need it and am not using it?

• Answer:

  The rule is you must begin repayment 6 months after you stop being a full-time student, it does not state anywhere, deferment until graduation, people just assume that for some reason. I advise you to pay it for. You said that it will be a 7-8 month absence. That is your six month grace period, then 1-2 months of payment. When you apply for deferment it will put you right back to when you stop becoming a full-time student. But keep in mind that each loan only has one grace period, so you will have to start paying immediately after graduation. What do you mean by cancel payments to the current University? If you owe them money and cancel the payment you will not be able to transfer to the new school. If you do not owe the school money and are referring to the money reserved for this Spring semester yes you can. Remember when you went through the MPN it states that you can cancel or alter the amount of your loan at any time. In general a student loan may only be deferred once, but lenders sometimes make extra provisions for you if you come to need help with repayment down the road.