Delay Repayment of Your Student Loans
Often the most difficult period of the life of any graduate is that terrifying few months following graduation. Suddenly thrust from the protection of the campus into the real world, many graduates find it a great challenge to find their footing. In fact, your actions during those first crucial months can define the course of your life forever. Scary, I know, but it’s something we all must face.
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To make those first few months a little easier to get through, there are several options available you to delay repayment of your student loans:
Grace Period
Most student loans come with a designated grace period, a period of several months following graduation during which no repayments must be made on the loan. This grace period allows you to take time to find a good job, instead of forcing you to take your first job offer in order to make your repayments on time.
Deferment
Students who return to full time study (for instance, to pursue a post-graduate degree), are temporarily disabled or lose their job may qualify for a deferment period during which repayments can be delayed. Unsubsidized loans continue to accrue interest during the deferment period, while subsidized loans continue to have their interest frozen. Deferments are usually granted for a period of 36 months.
Forbearance
Forbearance is usually available only to borrowers in cases of economic hardship where deferment doesn’t apply. The forbearance period is usually between 12-24 months. In forbearance every loan type, even subsidized Stafford loans, accrues interest. During this period you will have the option to make interest-only payments during this period to stop the loan growing.
While these methods can allow you to get through a difficult period following graduation, delaying your repayments of your student loans will only be a short-term fix. If you are finding it difficult to keep up with repayments it may be worthwhile to look into loan consolidation for a long-term solution to financial problems.
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Rates as of Sunday, October 12, 2008
| Institution | Rate % | APR |
|---|---|---|
 |
5.875 | 5.911 |
 |
5.875 | 6.033 |
 |
5.875 | 6.051 |