Unfortunately, there may be times when you can’t afford to make payments on your student loans. You may be temporarily unemployed or unable to deal with your student loan payments for other reasons, such as active duty military service. The good news is that in some cases you can suspend your payments, at least for a while.
Your loan payments don’t typically start right after you graduate from college. There is usually an automatic grace period to help you get on your feet before your student loan payments begin.
If you are in repayment and need to pause your student loan payments, you may be eligible for a temporary deferment or forbearance. There are different types of deferments and forbearances for different situations.
To see if you are eligible for a deferment or forbearance, talk to your loan servicer.However, before you request a forbearance or deferment, find out if you qualify for an income-driven repayment (IDR) plan. Your payment under an IDR plan could be as little as $0 per month. It is better to be on a $0 IDR payment than to pause your student loan payments through a deferment or forbearance because even with a $0 payment, you will earn credit towards IDR loan forgiveness. But if your payments under IDR are still unaffordable, then it may be worth considering a temporary deferment or forbearance.
In many cases, your interest will continue to accrue on your loans even while your payments are paused and will be added to your principal when you resume repayment. Interest adds up quickly and is often why loan balances grow so high and become unaffordable. You should consider all of the potential consequences before you ask for a deferment or forbearance.
