Deferrment Q

[golgi]

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Can you just defer your subsidized loans or is it that once you consolidate, there is no difference in sub/unsub loans-it's just one big loan at 2.875%?

If you can just defer your subsid loan amount, does this mean that no interest will accrue on it during the 3 yr deferrment period?

Thanks!

 

[turtle md]

Can you just defer your subsidized loans or is it that once you consolidate, there is no difference in sub/unsub loans-it's just one big loan at 2.875%?

If you can just defer your subsid loan amount, does this mean that no interest will accrue on it during the 3 yr deferrment period?

Thanks!

Once you consolidate, the loans all take on the same interest rate, but they remain sub or unsub. I am not sure you can only consolidate your sub loans while leaving the others out (but why would you want to?). Deferment is based only on your income and your loan amount. You must reapply for deferment on a yearly basis. If you do not qualify for deferment (like me 🙁 ), then you can put the loans in forbearance. The difference is that in forbearance, all your loans will accrue interest, while in deferment, only the unsub loans will.

 

[kas23]

Once you consolidate, the loans all take on the same interest rate, but they remain sub or unsub. I am not sure you can only consolidate your sub loans while leaving the others out (but why would you want to?). Deferment is based only on your income and your loan amount. You must reapply for deferment on a yearly basis. If you do not qualify for deferment (like me 🙁 ), then you can put the loans in forbearance. The difference is that in forbearance, all your loans will accrue interest, while in deferment, only the unsub loans will.

Not entirely true. Deferment is not only based on your income or loan amount. Other criteria exists that determines if you can be granted deferment, not just economic hardship. For example, if you are engaged in as a full-time postgraduate student, you are eligible for deferment. This is very significant because sometimes residencies will give you the title of "postdoctoral student" within their school of medicine in addition to "house officer." Mine does. Otherwise I would not have met the criteria for economic hardship. Check with your residency!

 

[prominence]

after consolidating your federal loans, can you apply for "economic hardship" or "deferment" just on your private loans?

 

[kas23]

after consolidating your federal loans, can you apply for "economic hardship" or "deferment" just on your private loans?

It depends on the lender and the type of loan. Most of them are more than happy to grant you deference (with meeting little criteria - are you breathing?), but you will still have to be paying interest and this is usually a very high interest rate compared to your educational loans. This is how banks make money

 

[StemCell]

I have a slightly different deferment question: In order to qualify for my mortgage I apparently need to PROVE that I'm in deferment for at least a year...

This is hard to do given that I haven't even reached the grace period yet...so my plan is to include any and every bit of documentation I have about how long my grace period is and the printout of the application/calculations for deferment. (given 160,000 in loans and 43,000 salary I qualify).

Has anyone else run into this? How did you get around the documentation issues?

TIA

 

[turtle md]

I have a slightly different deferment question: In order to qualify for my mortgage I apparently need to PROVE that I'm in deferment for at least a year...

This is hard to do given that I haven't even reached the grace period yet...so my plan is to include any and every bit of documentation I have about how long my grace period is and the printout of the application/calculations for deferment. (given 160,000 in loans and 43,000 salary I qualify).

Has anyone else run into this? How did you get around the documentation issues?

TIA

Yes, and what a freakin' nightmare it was. I knew about this before, so conslidated early. Then sent in my app for forbearance. It took over a month, with the closing date on my house fast approaching (and me out of the country on a little vacation), but after many an email, fax, and telephone calls, everthing worked out fine. Now I close on Monday 🙂

 

[obeymywife]

I ran into the same problem with my student loans when applying for a home loan. The way I got around this was the loan officer told me the loans had to be in deferment for at least one year. Since I have been a student for the past four years of medical school and thus my loans in deferment he said that would work. I also had documentation from the financial aid office stating my loans had been deferred while in school for 4 yrs. and that as a graduating student I have a "right" to deferment at the end of my 6 mo grace period. Incidentally they also calculated the loan to debt ratio and saw that I would qualify for economic hardship.

Hope it helps.