Deferring Your Student Loans
June 20th 2008 02:32
If you have federally guaranteed student loans, you have the option to defer the payment if you go back to school on at least a half time basis. Do you want to do that? Depending on what type of loan it is, you could continue to accrue interest on that loan during the deferment period. If you don’t at least make those interest payments, then you are going to end up increasing your monthly payment as well as the overall amount that needs to be repaid.
Ouch! That can really add up fast. Now if going back to school is going to put you in a good position later where you will be able to increase your income, this may not be a bad way to go. On the other hand if it’s not going to help your future income, all you are doing is postponing getting those college student loans paid off. Let’s face it, how long do you really want to be paying for those things?
I am not saying that you shouldn’t defer your student loans especially if you need to reduce your expenses while you’re getting another degree. However, be aware of all of the consequences of that decision and be prepared to increase your expenses once you are out of school. One other thing, once you are no longer enrolled in school on at least a half time basis; expect those student loan payments to do immediately. There is no grace period this time around.
Ouch! That can really add up fast. Now if going back to school is going to put you in a good position later where you will be able to increase your income, this may not be a bad way to go. On the other hand if it’s not going to help your future income, all you are doing is postponing getting those college student loans paid off. Let’s face it, how long do you really want to be paying for those things?
I am not saying that you shouldn’t defer your student loans especially if you need to reduce your expenses while you’re getting another degree. However, be aware of all of the consequences of that decision and be prepared to increase your expenses once you are out of school. One other thing, once you are no longer enrolled in school on at least a half time basis; expect those student loan payments to do immediately. There is no grace period this time around.
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