Many students who graduate from a college or university will need a student loan deferment at some point. Lenders maintain specific requirements for getting a student loan deferment, but in many cases, a graduate who has not yet used this option can successfully apply for a deferment to help with different kinds of economic hardship. Here are some of the situations where a student loan deferment will come in handy.
1. Your Home Business is Slow to Ramp Up
If you're a work at home mom or similar self-employed person, you may be experiencing problems with your student loan at the beginning of a startup business or a low point in demand for your products or services. This is a time when a student loan deferment can be a practical solution; getting a temporary deferment postpones your debt until such a time as your business income improves and you can make the loan payments more easily.
2. Creditor Calls
When the student loan companies are calling every month, this is a sign that a student loan deferment may be necessary. A temporary deferment can help student loan holders build up capital that they can use to pay on time in the future. It can also save both the lender and the loan holder a lot of time, where the annoying daily calls can become a real burden, and working something out is in everyone's best interests.
3. Prioritizing Bills
In general, the inability to pay rent on time can be a factor that can cause cash-strapped graduates to look for a student loan deferment. If you are constantly prioritizing bills, choosing which ones to pay on time, the student loan deferment may be right for your financial situation. Taking one bill out of the seemingly constant rotation of rent, utilities, car payments, etc. can have a very freeing effect on a household's financial cycle.
4. Loss of Job or Income
For a recent college graduate who has recently become unemployed or whose employer has cut back hours, finances can get tight and a student loan deferment can sometimes help.
5. Consistently Late Payments
Some graduates are just always late with their student loan bills. In some cases, they have the money but forget to follow through with sending it over to the lender on time every month. For others, there is a genuine problem paying off the loan on time. Again, a student loan deferment is one of the most popular options for dealing with times when payments are hard to come by on a personal or family budget.
All of these situations can be improved with a practical student loan deferment. It's not a good idea to try to postpone the student loan simply to avoid paying it down, but the alternatives put in place by the student loan industry do help many graduates pay off their loans more easily.