She had baby and won't be working for a year. Will Strafford loans etc wait for next year?
2007-05-14 06:15:23 · 4 answers · asked by ra_rubin 1 in Education & Reference ➔ Financial Aid
Your daughter has a six month grace period. She can then request a deferment for up to one-year for the preschool aged child. A deferment is different from a forebearance. With the deferment, interest doesn't begin accruing on the subsidized loan during the deferment period. It does accrue on the unsub loan. In a forebearance, interest will continue to accrue after the six month grace period.
I would not recommend consolidating at this point because your daughter can still request the deferment. When you go into consolidation, you go immediately into repayment, losing the six month grace period and jumping right to the one year deferment.
Call the servicer for more information about deferment, forebearance options.
2007-05-14 13:48:12 · answer #1 · answered by Jdub 4 · 1⤊ 0⤋
Congratulations on your daughter's addition to the family, it must be quite an exciting time for you!
As for dealing with your daughters Federal Stafford Loans I must clarify a couple things before I can answer your question accurately. First of all, when did your daughter graduate from school? Second, did your daughter take out only Federal Student Loans, or has she taken out Private Loans as well?
When dealing with her Federal Student Loans, which include Federal Stafford Loans and Federal Perkins Loans, there are two options that are possible for delaying payments called Deferment and Forbearance, both of which you must qualify for. To view the specific qualifiers for both Deferment and Forbearance see the source below. I hope this helped you out, good luck with everything!
2007-05-14 13:41:15 · answer #2 · answered by Student Loans 4 · 0⤊ 1⤋
Federal student loans have a 6-mo "grace" period before she must start paying back. After that she may be able to apply for a deferment for economic hardship, but keep in mind if it's an unsubsidized Stafford, the interest will continue to accrue and will be capitalized (added to the loan).
Another option may be to consolidate and extend the repayment terms, thereby lowering the monthly payment amount. However, extending the term will increase the total amount of interest you pay over the life of the loan.
2007-05-14 06:37:46 · answer #3 · answered by Anonymous · 2⤊ 0⤋
She will have a 6 mo. grace period from her date of graduation. After that she can request a forebearance, depending on her financial situation.
2007-05-14 06:25:22 · answer #4 · answered by brownidgurl 3 · 1⤊ 0⤋
Yes, there is a provision for new mothers, it allows deferrment for 1 year.
2007-05-14 06:24:48 · answer #5 · answered by professorc 7 · 1⤊ 0⤋