Is it ever possible to postpone repayment of my stafford loan?
Yes, under certain conditions, you can receive a “deferment” or “forbearance” on your loan, as long as the loan isn’t in default. A deferment allows you to temporarily postpone payments on your loan. If you have a subsidized loan, you won’t be charged interest during the deferment. If your loan is unsubsidized, you’ll be responsible for the interest. You can pay the interest as it accrues (accumulates), or it will be capitalized and the amount you’ll have to repay will increase (click here for more informaton). Click here for the list of deferments available for loans disbursed on or after July 1, 1993.

For information on deferments available on loans received before that date, FFEL Stafford borrowers should contact the lenders or agencies holding the loans. Direct Stafford Loan borrowers can contact the Direct Loan Servicing Center at 1-800-848-0979. TTY users can call 1-800-848-0983. Or, you can go online at www.dl.ed.gov.

If you’re temporarily unable to meet your repayment schedule, but you’re not eligible for a deferment, your lender might grant you forbearance for a limited and specified period. During forbearance, your payments are postponed or reduced. Whether your loans are subsidized or unsubsidized, you’ll be charged interest during a period of forbearance. If you don’t pay the interest as it accrues, it will be capitalized.

Deferment and forbearance are not automatic. If you have a Direct Stafford Loan, you must contact the Direct Loan Servicing Center to request either option. If you have a FFEL Stafford Loan, you must contact the lender or agency that holds your loan. You might have to provide documentation to support your request. You must continue making scheduled payments until you’re notified that the deferment or forbearance has been granted. Not making payments on your loan will have a negative effect on your credit rating, and your loan could go into default.
- posted by Mark Pane @ 10:16 AM