Deferred student loans are a common method for students to obtain financing for schooling that will be paid back after a deferred period of time. Student loan deferrals usually will allow the student to get on their feet after graduating. The period of time is usually six months.
The Stafford loan is a common deferred educational loan that the majority of colleges offer. It does not require any payment until six months after graduation or after you leave school. Another such loan is the Perkins deferred loan which is government backed. In many cases, private institutions will offer deferred payment student loans but you need to make sure you understand the terms for these. Many of them require repayment as soon as you get out of school with little to no grace period. Some require that you pay them back while you are still in school.
It is important for the student to understand the terms of deferred loans for education. In some cases, you might believe you are being deferred only to find out you are not. Some will have shorter deferred payment periods. Many of these loans are offered by third party lending institutions as well as the college you might be attending. Deferred loans are not difficult to locate and in most cases not difficult to attain. There are different loans out these for different types of credit worthiness so the student should be able to find one for their circumstances.
Unlike some information that is out there, a deferred student credit loan will not hurt your credit during the deferral period. Should you then not repay your loan, you will have credit implications. Until that point though, you do not need to worry about the deferred student loan appearing on your credit report as a negative.
If you must take out multiple educational loans which are deferred, you should look into the option of consolidating them all so you are only worrying about one monthly payment. There are many financial institutions that might be willing to help you with this option. One such option is the Income Contingent Repayment Plan. With such a plan, all your deferred student credit loans are put into one new loan with one interest rate and one set of conditions rather than multiple terms and conditions.
The government usually offers student loans with a deferral option. In this case, the government works with your college to offer the loan to its students. Not all colleges offer this as one of their financing options. However, there are many deferred student loan options available for just about every student if you just do your research to locate them.
