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Question:


Can you defer federal student loans if you’re receiving unemployment?
-Jobless


Answer:


There’s a grab bag of federal student loan programs, such as Stafford, Perkins and FFEL, that typically involve banks making loans that the government guarantees in order to entice the lenders to extend credit and keep interest rates low. Deferments are generally granted for up to three years under these programs to debtors who are unemployed, and it’s common for interest to be frozen. In some programs, however, interest continues to accrue; a borrower will have to pay the interest as it gets tacked on, or else the amount owed will rise during the deferment. In either case, you should continue making payments in full, if you can, after you apply for a deferment until it is granted. For more information, have a look at the Department of Education website studentaid.ed.gov.
-Conrad de Aenlle



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