Options to Consider Before Postponing Payments
Before you postpone your payments, consider an Income-Driven Repayment (IDR) plan. IDR plans offer the same short-term benefits as postponing payments, including:
- Reduced or $0.00 payments based on your individual situation
- Interest subsidy and interest benefits to limit the financial implications of paying less interest than accrues each month
- Clearing of delinquent payments if you are already past due
In addition to the immediate benefits, IDR also leads to loan forgiveness if a remaining balance exists after 20 or 25 years of qualifying payments (even if your qualifying payments are for $0.00 per month).
Most of our borrowers on an IDR plan have a $0.00 monthly payment!
About Deferment and Forbearance
|What they mean||
A deferment or forbearance allows you to temporarily postpone your monthly payments under certain circumstances, such as:
All loan types—You are responsible for paying the daily interest accrual during periods of forbearance.
|Requesting a deferment or forbearance||
|Endorser/Co-Maker requesting a deferment or forbearance||
Keep in mind
- A deferment or forbearance is only a temporary suspension of your monthly payments.
- In most cases the interest on your student loans continues to accrue during this time.