Deferment
Dear American Student Assistance:
I am one of the many victims of this recession and have been laid off from my job. I am considering returning to school to get my master's degree, but I cannot afford to do that and pay my bills, especially my student loans from my undergraduate degree. Can I put those on hold while I go back to school?
Sincerely,
Rebecca
Dear Rebecca:
If you return to school at least half time, you will be eligible for an in-school deferment on your federal student loans. During the deferment, no interest will accrue on your loans that are subsidized, but the others will continue to accrue interest. You have the option to pay that interest while you are in school, which will prevent it from capitalizing to your principal balance. If for some reason you do not go back to school but continue to seek employment, you may also be eligible for an unemployment deferment. For more information about both deferment options, you can contact your loan holder.
Regards,
Applying for Financial Aid
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