Early on I was worried I could not make the payments to my student loans. I have had times where I just could not make my student loan payments. I called my lender explained to them my hardships, and I was given several option so I would not default on my loan. I have a Stafford Loan, so I was given the option to a deferment, or forbearance.

  • Deferment — A period of time during repayment in which you, upon meeting certain conditions, are not required to make regular monthly payments. There are lots deferment programs that are available.

  • Forbearance — A Reduction of payments due to financial difficulty. Forbearance is usually granted for periods up to twelve months at a time. You are responsible for all accrued interest during a forbearance period. Unpaid interest may be capitalized quarterly or at the end of the forbearance.

If you are down and out like I was a that period of time do a deferment, that way you can get your financial situation straight. If I remember correctly my deferment lasted for about six months, of which I didn’t have to pay monthly on my loan.

The Stafford Loan has two different types of loans:

  • Subsidized — A loan that you receive where you will not be charged any interest before your period of repayment.

  • Unsubsidized — A loan that you can receive, but will be charged interest from the time your receive the loan until you pay it off. (choose to repay the interest as it comes, because if this accumulates it will increase the amount you have to pay because this loan is capitalized)

Some of more important information that is needed to know is not told to you as a young college student. Most of the information I know, I either experienced it or read about it myself. Universities try to get students to listen to seminars about financial aid, but as a 18 year fresh out of the house going to seminars was out of the question.

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