How to defer Student Loans Forever
Defer Your Student Loans: How Long Can You Do It? | Student Loan Planner
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so can you defer your student loans for
basically like forever if you know the
rules that I'm gonna show you you might
think that the answer is yes so we're
gonna go over six different kinds of
deferment for student loans and we're
gonna talk about how long you could use
each to put off your payments and we're
gonna talk about why you know if you
really understood these rules maybe you
would never want to make the payment
again I don't know some of these things
when you defer your students or things
that you really hope doesn't happen to
you some of them are just things that
happen in life generally if you're doing
certain occupations some of it is you
know temporary kind of things that might
happen to people like losing a job so
we're going to cover all the six
different kinds of deferment and kind of
contrast that to with forbearance which
is another term and another thing that
people use to avoid having to pay their
student loans so let's talk about the
first kind so the first kind of
deferment is in-school deferment this is
by far the most common and usually when
people talk about deferring their
student loans they talk about it you
know because they're a student and
you're doing this in-school deferment
which is an automatic deferment and you
get it when you're at least enrolled
halftime and this is obviously pretty
helpful because if you're a student you
had to make student loan payments they'd
be pretty tough right now that wasn't
looking into things like income driven
repayment you know honestly with income
driven repayment options it's kind of
irrelevant because if you're a student
making Nothing your payment would be
nothing if you did have to make payments
but at least you're not required to make
payments right you can just focus on
being a student so how long can you use
in-school deferment for the answer to
that is basically unlimited I mean if
you're a student for forever you can use
it for forever
but you basically have to be enrolled
halftime so you get it for that length
of period and then also you get it for
six months after graduation
that's called a grace grace period
basically so that's the first kind and
it's by far the most common so let's
look at the second kind which is
unemployment deferment so unemployment
deferment is different because you would
only get this if you applied for it and
when you're going to apply for it you're
basically going to get approved for up
to six months and you have to reapply
every six months and you get a total of
three years worth of unemployment
deferment so if you lose your job you
can call your servicer say you're
unemployed basically prove it to them by
signing something or submitting some
sort of application and then you'll get
approved for unemployment deferment
that's the second kind now the Third
Kind is economic hardship deferment this
is a little different and economic
hardship deferment honestly I'm gonna be
real okay I think I know what about CEO
loans until you know I find something
new every day I mean it's just really
unreal right I thought that economic
hardship deferment was basically the
same thing as hardship forbearance and
it's not so deferment in general means
you're basically you know putting off
having to make payments your student
loans but any kind of subsidized loans
that you have are not going to be
accruing interest during a deferment
whereas during a forbearance they
probably would be so that's why
deferment is generally preferable to
forbearance all right and forbearance
the loan servicers have a lot more
discretion over where as deferment is
something that's pretty set in stone
it's clear in the rules as to what's
expected so economic hardship deferment
you'd be eligible for that if your
income was below 150% of the poverty
line for your family size so basically
you can go look up on the basically
department of health's I if you just
type in federal poverty guidelines and
it'll show you what it is for your
family size just multiply that number
for your family size by 1.5 and if your
incomes below that you'd qualify for an
economic hardship deferment so why not
just do that forever if your incomes low
you might ask it's because you only can
do it for a maximum of 12 months and
then that's at a time and it's a total
of up to three years so you can't do it
forever you can only do it for a limited
amount of time number four is the
military deferment so this is you get
called up you have to go serve overseas
you have student loans you're the
military your student loans are put into
a deferment until you get back and you
actually can use it for up to thirteen
months after having to serve in the
military for certain situations so a lot
of times this deferment is a something
that just kind of happens I've even had
some clients that have had a military
deferment happen to them when they
didn't want a military deferment I mean
certainly if you're trying to pursue
something like public service loan
forgiveness
and you get put into deferment that's
awful that's terrible you're serving our
country and you could get one
forgiveness in ten years but you know
your loan servicers is taking it upon
themselves to relieve you having to make
payments and taking away potentially
years of credit from you so that's
really unfortunate but you know it is
something that if you really really had
to put your loans into deferment you
know let's say that you don't have maybe
enough you know loans to really justify
going for a big loan forgiveness program
then that might be you know a reason for
you know for free using that one but
really it's just kind of unreal that you
have something like military deferment
and public service loan forgiveness you
know it just shows you how ridiculous or
a loan program is that those two would
coexist now number five is a new kind of
deferment called cancer deferment and
this is the one obviously I hope none of
you actually have to use but if you are
ever having to go through treatment for
cancer you're allowed to put it in
application with your loan servicer and
pause your payments and also you get an
additional six months after that so
that's really helpful if you're really
struggling with your bills trying to
figure out how to you know not only keep
your job that just make it through
cancer treatment beat cancer so you know
really you know hopefully you don't have
to use that one but if it if it if you
do ever have you forbid have to go
through that then at least you have
option five cancer deferment to pause
your student loan payments so you can
focus on more important things in life
frankly number six and the last kind is
the catch-all other kinds of deferment
category so I'll give you examples this
doesn't really apply to most people but
for example if you were doing a approved
fellowship program say you were going to
for example a lot of medical folks go
through fellowship programs for post
residency training or there's also
dental folks that will be involved in
various residency type programs there
are a lot of really random graduate
fellowship programs and you can get them
approved for a deferment during that
period where technically you're not a
student you might be making an income
but it might not just be very very large
income and compared to what you will
make in the future now there kind is
there's actually a deferment
specifically for people who are you know
disabled but in a rehab program to get
them back to work and then there's also
a deferment period for people that are
working towards Perkins loan
cancellation so those are six different
kinds of deferment and if that's not
enough you can all
to do something called forbearance which
you can use one year at a time up to
three years total to put off your
payments with that too and deferment
like we said is preferable to
forbearance but both will stop your
payments and then what's really nuts
about this is the loan servicers will
hand out forbearance like candy
basically their cure for everything is
in forbearance because they don't have
to go through a bunch of applications
which as you can tell some of these
deferments actually require
documentation and what's even better is
to not even have to do that they just
want to put you in the forbearance
because it's a quick phone call and
they're done right so you are allowed to
utilize both of them at different times
so if you do think you qualify for one
of these deferments just portia one
servicer to accept that deferment
request rather than a forbearance
request because they want to get off the
phone as fast as possible right and so
that means that they're not going to
want to give you information about all
the different loan programs that you
could be eligible for and deferment it's
a really helpful thing for people in
some situations so the other thing to
note is remember I said at the beginning
of this video that you can put your
student loan payments off basically
forever if you knew these rules so if
you have a bunch of federal student
loans and you consolidate them what
happens it's a new loan and because it's
a new loan all of the aforementioned
limits on how long you can put off
payments that I mentioned are all reset
and all start all over again so that is
nuts that means you could put your 1
payments off for years and years and
years and we can tell with the number of
people who owe six figures in America
and how fast the numbers increasing that
problem is becoming worse and worse and
worse so those are the different kinds
of deferment and forbearance if you have
any questions about the differences or
you have a story to share about what
your loan servicer told you leave it in
the comments below we'll take a look and
see if we can get to the bottom of
what's going on in your situation Thanks
I'm Travis from steel owned planner
