Are you struggling to make your student loan payments? You may be wondering if you can defer refinanced student loans to give yourself some breathing room. In this article, we’ll cover everything you need to know about deferring refinanced student loans, including what it is, how it works, and whether it’s the right option for you.
What is Deferment?
Deferment is a way to temporarily postpone your student loan payments. This can be helpful if you’re facing financial hardship or returning to school. During deferment, you won’t have to make payments on your loans, and interest won’t accrue on most types of loans.
How to Apply for Deferment of Refinanced Student Loans
To apply for deferment of your refinanced student loans, you’ll need to contact your loan servicer. They will provide you with the necessary forms and assist you in the process. You’ll typically need to provide documentation of your financial hardship or enrollment in school.
How to Qualify for Deferment of Refinanced Student Loans
To qualify for deferment of your refinanced student loans, you’ll need to meet certain criteria. This can include:
- Being enrolled in school at least half-time
- Serving in the military
- Being unemployed or experiencing economic hardship
- Having a disability
The Pros and Cons of Deferring Refinanced Student Loans
While deferment can provide temporary relief from student loan payments, it’s important to weigh the pros and cons before applying. Some of the pros of deferring refinanced student loans include:
- You won’t have to make payments on your loans while in deferment
- Interest won’t accrue on most types of loans during deferment
Some of the cons of deferring refinanced student loans include
- Your loan term will be extended, which means you’ll have to make payments for a longer period of time
- Interest will continue to accrue on unsubsidized loans, which means your loan balance will grow
- Depending on the type of loan, you may be required to pay a fee to enter into deferment.
Alternatives to Deferment
Deferment may not be the best option for everyone. If you’re struggling to make your student loan payments, there are other options available to help you manage your debt. Some of these alternatives include:
- Income-Driven Repayment (IDR) plans
- Refinancing your student loans
- Consolidating your student loans
- Loan forgiveness programs
Conclusion
Deferring refinanced student loans can be a helpful option for those facing financial hardship or returning to school. However, it’s important to weigh the pros and cons before applying and explore all available options. By understanding the process, qualifications, and alternatives, you can make an informed decision about how to best manage your student loan debt.