According to a study by the National Post-secondary Student Aid Study (NPSAS), 65.6% of seniors have had to borrow money to finance their higher education. Whilst many individuals will find work and not face money issues, this won't be the case for everyone. Student loan deferment allows someone to stop making repayments for a finite period of time until their circumstances improve. Whilst it is a recognition that life rarely goes according to plan, deferment doesn't reduce student loan debt.
What is Student Loan Deferment?
Deferring student loan repayments may be possible for up to three years, provided that the borrower hasn't previously defaulted on an agreement. An account is technically considered to be in default when payment hasn't been received within the last 270 days of the due date. It is normally possible to defer student loans when the borrower is struggling because of financial difficulties and/or is experiencing problems finding suitable employment. Unfortunately, for anyone who doesn't have a subsidised federal loan, interest will continue to accrue throughout the period of deferment.
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