$0 income, Deferment, Grace periods

Discussion in 'Financial Aid' started by wipedown, Jun 18, 2008.

  1. wipedown

    2+ Year Member

    Feb 23, 2007
    Likes Received:
    After graduation and before starting residency, one makes no income. Therefore, that person qualifies for deferment (let's say for 12 months).

    However, some of his loans have a 6 month grace period. Since loan payments on grace loans are excluded from deferment calculations, he would not qualify for deferment had he applied during those 6 months.

    Is it acceptable to apply for deferment while at $0 income, then re-apply *after* the grace period is expired, in order to maintain deferment at all times?

    Or must one change to forbearance during the 6 month grace period, then change back to deferment afterwards?

    My understanding is that most students do it following the former scenario and that this is not a problem. Thanks for any help!

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