How do I defer student loan?

How to defer a student loan... Is it the best choice?

• I am no longer going to be accepting student loans because I already have 28,000 dollars out in subsidized and unsubsidized loans. I am going to pay out of pocket for the remaining aid. However, I will not be going to school for another 8 months because I was not accepted into the nursing program until March of 2010. There are no other classes that I can take either until then. How do I defer my loans if I am not in school for 6 credit hours... is it even an option if you are not enrolled for 6 credit... I know a person can defer for 6 months, but is that the limit?

• Answer:

  Judy (John Fredd and the Playboy Band say hello): Student loans offer an "in-school deferment" feature, coupled with a 6-month "grace period" that begins to run any time you leave school. Your issue is obviously the expiration of that 6-month period, and yes, absent any other arrangement, you will be expected to begin making payments on your loan(s) when the 6 months are up. Your options would be to either make the 2 payments for months 7 and 8 of your downtime, or contact the lender, to see if they will grant you a temporary forbearance. Like a "deferment", a forbearance is a temporary postponement in your payment obligation. The difference is that a deferment is generally a "right" that is granted to you under certain circumstances outlined in your lending agreement, whereas a forbearance is a special accommodation granted by the lender, generally as a courtesy. Your situation is not as uncommon as you think, so your lender(s) will have a routine policy in place for dealing with it. If you're not comfortable with the idea of making a couple of payments, or even if you'd just rather determine all of your options, give the lender a call and explain your temporary educational hiatus. Good luck to you!