deferrment

[sunny9505]

If you qualify for deferrment, does the subsidized stafford begin accruing interest? Thanks!
Also, is there any disadvantage to starting paying off your loans in residency?

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[DO for ophtho]

the subsidized stafford does not start accruing interest while you are in deferment....that includes economic hardship deferment (EHD). What sucks is that you can only apply for EHD for 3 years. So if you are in a 4 or 5 year residency program, after your 3 years of EHD are up you have to go into forebearance, and its when you do this, that they can start applying interest to your subsidized stafford. Hope that helps.

 

[sunny9505]

Thanks DO optho! I called up my lender and it turns out I won't qualify for deferrment and my school said I can't take out any more loans to try to qualify. Anyone know how this works? My monthly payment would be $20 below what I would need to qualify, so that sucks.