Student loan deferment allows you to temporarily stop making payments on your student loans. You may be required to continue making interest payments or you may be able to choose whether or not you pay the interest each month. Student loan deferment extends the period of time that it will take you to pay off the loan, and it causes you to pay more interest on the loans, so it is important to be sure that you really need to put the loans on deferment.
If you have just lost your job you may want to put your loans on deferment until you find another job. Additionally if you are having a hard time meeting your basic needs you may want to put your loans into deferment. Some people will do this and focus on getting rid of their other debt as quickly as possible, but this is only if you cannot make all of your payment while paying on your student loans.
You do need to contact your lender in order to set up the process of putting your loans into deferment. You may need to prove that you qualify for the economic hardship that allows you to put your loans on deferment. They may ask you to send documentation and give you a time limit of how long you will be in deferment. When this period is over you may be able to negotiate a longer period if you still have difficulty paying the loans. Additionally the loan companies may be able to work out a lower payment amount to help you to be able to pay your loans.
If you have private student loans, you may not have this option. You will need to speak to your lender to find out. But private loans do not generally follow the same guidelines as Stafford or other federally subsidized loans. It is important to carefully follow the guidelines that are set forth by your lender and to continue to make payments until everything has been approved so you can avoid late fees and other penalties as well as a black mark on your credit report.
