PLUS Loan Question

[zoosermom]

<p>Can anyone explain forbearance/deferral? I called my loan servicer and she might as well have been speaking Greek. Obviously, I'll do my own research, but I don't yet know what questions to even ask. Thank you!</p>

[hazmat]

<p>does this help you out at all?

** If you sincerely want to pay your loan but are financially unable to do so, you may request forbearance. Forbearance provides a temporary postponement or reduction of principal payments for a specified period of time. During forbearance, your loan will continue to accrue interest. If you don’t pay the interest as it accrues, it will be capitalized.</p>

<p>Forbearance is a great way to avoid delinquency or default, but it is not a right. To request forbearance, you must contact your lender directly. Lenders are not required to grant forbearance, and must review your individual circumstances to determine your eligibility.

**</p>

<p><a href=“Your Guide for College Financial Aid - Finaid”>Your Guide for College Financial Aid - Finaid;

<p>

**Deferment
Occurs when a borrower is allowed to postpone repaying the loan. If you have a subsidized loan, the federal government pays the interest charges during the deferment period. If you have an unsubsidized loan, you are responsible for the interest that accrues during the deferment period. You can still postpone paying the interest charges by capitalizing the interest, which increases the size of the loan. Most federal loan programs allow students to defer their loans while they are in school at least half time. If you don’t qualify for a deferment, you may be able to get a forbearance. You can’t get a deferment if your loan is in default.

**</p>

[zoosermom]

<p>Yes, thank you.</p>

[hazmat]

<p>I am thinking your question related to payments made during the time your student is in school AND what might happen should payment become difficult for any reason after school. It is a lot of terms to get familiar with. Keep at it. Don’t do something until you understand.</p>

[zoosermom]

<p>“I am thinking your question related to payments made during the time your student is in school AND what might happen should payment become difficult for any reason after school. It is a lot of terms to get familiar with. Keep at it. Don’t do something until you understand.”</p>

<p>Actually, that’s not the situation. But I do thank you for the information. It’s very much appreciated.</p>