Loan Deferment: v. 2009

[hyperbaric]

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So with the new rules in place, has anyone from a 2009 graduating class been able to defer their loans? Everyone I've talked to has been unsuccesful.

 

[filter07]

I graduated a few years back, and supposedly didn't qualify based on the criteria on the application form, but I submitted anyway and was approved for deferment.

 

[EM2BE]

Everyone I know has been able to defer.

 

[neurochica]

Ditto... I was able to deffer for 4 yrs!!!

 

[pmpkn219]

To be clear, are we talking "deferment" or "forbearance"?

I was under the impression we could not defer (ie: Feds pay interest on Subsidized loans, so they are not accruing). Forbearance is still on the table (interest accrues for all loans)

 

[cali-ob]

I have been able to use economic hardship deferrment. Based on my income/student loan ratio and family size. My debt isn't even that high but because of my family size I qualify. For those who are single but with high debt load, you should also qualify.

 

[hyperbaric]

I am refering to deferment. Of my residency class no one has been granted deferment. On the contrary we have all been able to forebear.

 

[Kris1]

Soon-to-be-graduating medical student here. What is the difference between deferment and forebearance? Also, I have a wife and two children. Does this help with my chances of deferring?

 

[TMP-SMX]

Deferment means that your subsidized stafford loans are not accruing any interest. It also means that your unsubsidized loans have not yet capitalized their interest to the principal amount. (No interest on interest until you end each deferment term of one year or enter repayment).

Forbearance just means that you don't have to make payments. The interest is accruing on both subsidized and unsubsidized. Capitalization occurs on subsidized loans at the end of each term of one year or repayment. On unsub loans capitalization occurs the same as far as I know but the wording isn't clear.

 

[blanche]

It also means that your unsubsidized loans have not yet capitalized their interest to the principal amount. (No interest on interest until you enter repayment).

is that true? i've deferred every year, and Sallie Mae has capitalized my interested every time I've reapplied.

 

[TMP-SMX]

You are correct since the interest will only capitalize at the end of each deferment term (one year) rather than quarterly or whatever it would normally in repayment.

And looking back at the actual terms given on the federal student aid website it's actually a little more complicated with forbearance.

 

[macro0rchidism]

"For all Internship/Residency Deferment requests:
At the time your Direct Loan was made, you must have had an outstanding balance on a Federal Family Education Loan (FFEL) Program loan which was made prior to July 1, 1993."

Huh? This doesnt make any sense, I don't think any of us meet this requirement...

 

[madtowngirl]

I'm an '07 grad. I deferred for 2 years, and when I went to continue my deferment this month, found that the rule that applied to me no longer exists as of July 1, 2009. The 5th and 6th reasons for deferment have been removed, the latter of which is for those working >30 hours per week and having (gross monthly income - projected loan payments) above 220% of the federal poverty level (or something to that effect).

So from here on out I will have to forbear (if possible). I hope this is not the case for everyone else out there. Student debt is already astronomical and growing, and adding immediate repayment or compounding interest during forbearance is adding insult to injury.