Unemployed Graduates Can Delay Their Student Loan Payments by Up to Six MonthsIt is no secret that the job market is extremely tough for new college graduates. Coupled with the fact that many have enormous amounts of student loans, college graduates are starting their adult life under back-
breaking financial pressure. Luckily there is an option that can give graduates a little breathing room.
Unemployment student loan deferment is available to graduates who have not yet obtained a job after graduation. The deferment length can vary by bank and institution. According to Citibank, they offer a 6 month student loan deferment. Even if you obtain a job during the deferment period, you are still not obligated to begin repaying the loans until 6 months later. This option also has no bearing on your credit. The following requirements must be met to obtain a student loan deferment:
** Have an outstanding Federal Stafford, Supplemental, PLUS or Consolidation Loan.
** Be conscientiously seeking full-time employment in the U.S. in any field and at any salary or responsibility level.
** Be registered with a private or public employment agency if there is one within 50 miles of your permanent or temporary address.
** You will need to confirm your search for full-time employment during the preceding six months when applying for a continuation of an unemployment deferment.
** Re-apply every six months.
** If you obtained your FIRST loan on or after 7/1/1993, you are eligible for a maximum of three years of Unemployment Deferment.
ven though you are granted 6 months free of student loan payments, it may be wise to at least pay off some of the accruing interest. Though your payments have been put on
hold, your unsubsidized student loans will continue build up interest. In order to lower your interest payments, it is recommended you also consolidate your student loans and lengthening the repayment period. Graduate student loans can be lengthened up to 25 years. Of course you must consider that this means a higher total loan payment in the end. Consolidating and lengthening the repayment period can be done through the Federal government. Please check out DirectLoans.com for official information regarding the policies of student loan repayment plans.
In conclusion, unemployed college graduates with student loans should consider applying for an unemployment deferment. It is an extremely tough time for many in this country struggling with college loan payments. Hopefully this option will help get some people back on their feet. It is also important to try and consolidate your loans and lengthen the repayment period. Utilizing all three steps can go a long way toward easing the financial pain.
