The alternative option is to
get on a deferment, forbearance, or lower payment plan if the payments are too high.
There is generally a three - year
limit on deferment, which is typically offered in six - month increments.
I learned quickly that I couldn't afford those payments either and I
went on deferment due to economic hardship.
I understand the need to place the
loans on deferment but when you do that typically the interest continues to accrue and the balance builds.
Reviewing a lender's
policies on deferment, forbearance, and other repayment features is also necessary in order to make the most suitable decision.
However, I have over $ 16,000 in Perkins loans which are
currently on deferment; I'll need to start making payments on these, too, by March 2018.
In many cases the borrower would call their lender or servicer for help and they were simply
placed on a deferment or a forbearance program which in turn would have the loans accrue interest.
Since these loans have been
on deferment, would they be eligible?
So the issue is really, what is the best way to get the 10K out of the way so you can start paying back the private loans because even though you are
on deferment, the interest is still growing.
When payments are not required, such as when you're in school or when your loans are
on deferment, interest is accruing on the loans.
Citibank worked with
me on deferment, income based repayment, and delaying payments due to unemployment.
90 % of my debt is school loans that are
on deferment.