Many people who may be struggling with their student loan repayments might have options in either student loan forbearance or student loan deferment. Both of these options should only be used in cases where a graduate is having trouble repaying their student loan debt and fears that they will become delinquent or may default on the repayments at the present time.
A student loan deferment is usually the optimal choice because this is simply a suspension of the money you owe on your student debt. Many lenders often just freeze your student loans during this time and allow you to forgo any monthly payments that you would otherwise have to make under a repayment plan.
If a deferment is not an option a forbearance can be helpful as well. However, many times student loan forbearance plans require that you pay the interest that accrues during the forbearance period. Some lenders will even make unpaid interest during a forbearance part of your loan principal, which is not something that will be beneficial seeing as how it’s increasing the amount of principle you owe plus interest.
Anyone who may need help in repaying their student loans may be able to get an economic hardship deferment or an unemployment deferment. However, no matter if you get a deferment or a forbearance plan you need to make sure that you take all the steps you can to avoid becoming delinquent on your loans or worse.
Even if you are in a situation where you must still make monthly payments on student debt interest it will be much better than defaulting on your loans or missing various payments, which will hurt your credit score and cause you financial troubles in the future. Anyone struggling to make student loan repayments should contact their student loan lender and talk about options that may be available to make their student loan repayment more affordable.