Page 79 - Book8E

Postponing Your Student Loan Payments if You Have Financial Trouble
You should know that federal student loans include the right to have your payments deferred if you cannot pay them. You will still have to pay the loan back eventually, and interest may continue to accrue while you are not making your loan payments. Under some conditions, you may receive a deferment or forbearance that allows you to temporarily stop making payments. For example, you may qualify for a deferment if you return to school at least half-time, are unemployed, or are expe- riencing an economic hardship as defined by federal regulations. If you don't qualify for a deferment but are temporarily unable to make loan payments for reasons such as illness or financial hardship, you can still be granted a forbearance.
Forbearance means that your payments are reduced or postponed for a period of time, usually about a year and sometimes up to three years, because you are experiencing financial difficulty. You may be granted
Student Loans and the Cost of a Good Education 69