2006-06-18 03:58:12 · 7 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
if you defer a student loan, the interest keeps accruing during the deferment period. you can pay it off, but you're not required to. the only thing is, whatever interest isn't paid off from the deferment period is applied to the principal, which you have to pay interest for later.
for example, if you borrowed 1000 dollars and deferred a student loan for a year, and your percentage rate is 8%, then after one year you will have had to pay $80 for interest. If you don't pay the $80 dollars interest, then it is put on the original amount, to make $1080, and then once you're out of school you're now paying back the loan with the interest of 8% for $1080, not just $1000.
hope this helps!
2006-06-18 04:05:19 · answer #1 · answered by lesdechetsla 2 · 0⤊ 0⤋
No catch. Most companies will let you defer up to 36 months of your student loan. They understand that you go through periods of unemployment and have family emergencies. They don't want you to default on the loan outright and will generally help out as much as possible to ride out bad times with you so that they can start receiving those payments again when you're back on your feet. The worst thing you can do is avoid any creditor. Always contact them and let them know what's going on and discuss your options. It'll save your credit.
And as listed above, you get an automatic deferral from your student loan if you go back to school and become a student again. But you have to let them know that.
2006-06-18 04:10:54 · answer #2 · answered by Neerdowellian 6 · 0⤊ 0⤋
Not sure if there's a "catch" to it...where I live if you Graduate from the program and attain a degree the government defers a portion of your loan. Once I was finished school, I did not have to start making payments on my loan for 6 months, thus the payments were deferred temporarily.
You would need to check in your area what the requirements and processes are.
2006-06-18 04:06:52 · answer #3 · answered by sjarz_006 1 · 0⤊ 0⤋
Pat your self contained in the decrease back for being so worried and to blame. No, it isn't a waste of money because you'd be paying for it later. in case you pays the pursuits now, you examine the field and in case you'll in no way be able to deliver any funds today you do not examine the field. :)
2016-11-14 22:37:34 · answer #4 · answered by ? 4 · 0⤊ 0⤋
The interest just keeps adding up and there may be fees, penalties.
2006-06-18 04:42:32 · answer #5 · answered by Cyn 3 · 0⤊ 0⤋
Your grandchildren will get to pay them off.
2006-06-18 04:18:54 · answer #6 · answered by kentonmere 2 · 0⤊ 0⤋
Pay me now or you'll pay me more later, the choice is yours.
2006-06-18 06:06:34 · answer #7 · answered by Anonymous · 0⤊ 0⤋