When to Defer Payment

If you're having trouble paying all of your bills, a student loan deferment can give you a bit of breathing space to get caught up. Basically, a deferment allows you to suspend payments for a certain period of time. Here's how to determine when you may be eligible to defer payment.

Have You Adjusted Your Budget?
Before asking your lender for a deferment, make sure you've done everything you can to cut back your spending. It may just be that you need to set up and stick to a budget. Cut out extras such as eating out, cable TV, or other luxuries. If you truly don't have enough income to make your student loan payments, then a deferment may help.

What Type of Job Do You Have?
In some cases you can just call you lender and ask for a deferment for a few months. But if you go back to school or work in certain professions you may be eligible for a deferment on federal student loans for a longer period. People in some teaching, medical, public service, and military jobs may be able to postpone payments for a while. Check with your employer to find out if your position qualifies you for loan deferment.

Are You Disabled?
If you haven't been able to work for at least sixty days because of illness or injury, or you must care for a disabled spouse, you may be eligible for a deferment. Disability could include complications from pregnancy or being enrolled in a licensed rehabilitation program for drug or alcohol abuse.

What Is Your Family Situation?
A deferment may also be granted if you must take a parental leave for pregnancy or to care for a newborn or adopted child. You must have been a student for the six-month period before applying for a loan deferment, or unemployed, or unable to attend school.

Having a deferment on a student loan could impact your credit score if you don't have great credit. Also, interest continues to accumulate on your loan, increasing the total balance due.

About the Author
Francine L. Huff is a freelance journalist and the author of The 25-Day Financial Makeover: A Practical Guide for Women. She has appeared on a variety of TV and radio shows.