Deferring student loans

kikibaby · October 2009

I am considering deferring the remainder of my student loans, but I don't know if it's a good idea. I have already deferred them once before and just started paying again about 6 months ago. I've been having trouble keeping up with the payments, though.How many of you have deferred or are deferring currently? I hate to sit on them, but I'd rather put the money towards my high-interest credit cards and get them paid off before I worry about the very low or no interest student loans.

Nebb · October 2009

Im not sure if its the same thing, but with the ontario student loans we have here, there is the option to go on something called interest relief if you make less than a certain amount (and you dont have to make payments and they pay the interest). I was on it for years before I started paying it back recently. I probably wouldnt again because I am paying it off now and the payments arent affecting me, but if I wasnt making enough to keep up I would.

shellybeth · October 2009

Mine got deferred because I am in graduate school now. However, I am taking out tons of money and when I have to start paying them back I am really afraid! (especially since I am going to be an elementary teacher who doesn't make too much money). Right now my payments each month would be like $250, which is a lot for me (more than my car payment!). I am going to take out more student loans next year when I student teach... I know this doesn't help you about whether you should defer them or not, but it just shows that others (like me) are in the same boat. When is there going to be a student loan forgiveness??

shellybeth · October 2009

Oh that reminds me.. if you call your loan company they can usually change the payements to help fit what you can pay without having to defer them. I think they can make smaller payments each month, but you then have to make it over a longer period of time. If you call them I I think they will work with you.

vallyhoo · October 2009

I don't know anything about deferring, but someone once mentioned there is an option for 'financial hardship' - not sure what is involved in that... but just thought I'd throw it out there.

kikibaby · October 2009

nebb- I don't know if we have something like that, but when I deferred last time, only about 10% of my loan accrued interest.

mmm_080809 · October 2009

No interest student loans?? I hate you a little bit.

kikibaby · October 2009

Thanks Stage, forbearance is what I'm thinking of. I feel like such a suck because I can't pay them, but I'm really struggling

danieliza1127 · October 2009

Well the main downfall to that is that it's not a deferment unless you're in school. If you aren't in school, all you can get is a forbearance and that means that interest keeps accruing even though you aren't paying monthly payments. Have you tried contacting your student loan company to see if you can change your monthly payment amounts or consolidate your loans?I always assumed my loans were consolidated because they are all through one company but it turns out they weren't consolidated at all. I consolidated them and my monthly payment went from $140 a month to $30 a month.

future-weddedbliss · October 2009

Why take out student loans for a graduate program and then be a kindergarden teacher, which doesn't require a masters degree? Why not just start working??

sarahgrin · October 2009

The longer you wait, the more you'll have to pay. Unfortunate, but usually true. Call the loan company and see what your options are.Something I've been doing with my student loans (I, too, want to go to grad school and be a teacher!) is over-paying whenever I can. My monthy payments are about $200, but whenever I can I pay an extra $25 or $50, or even a hundred. Since I've been doing this ever since I started paying them, I'm prepaid through April of next year. Just in case! ^_^Good luck!

kikibaby · October 2009

Why take out student loans for a graduate program and then be a kindergarden teacher, which doesn't require a masters degree? The Masters program is when they teach you how to spell kindergarten.

jilybeans4 · October 2009

Yeah I don't know about forebearance or deferrment either, but I do know that they have several options for payment plans. You can go with one that starts with low payments and gets higher every few years until you are at a "normal" payment - usually those span 25 years so depending on how much you owe, it might make your payments pretty low ( I owe 50k so even on that plan, I pay almost $350 a month....) You also can do an income based payment plan. If you are having trouble because you just don't make enough money, they can put you on one of those and that could probably help. If you can't afford them because you shop too much or live in an apartment you can't afford, then I doubt they will be sympathetic. I'd call them regardless and see what your options are. If its a true financial hardship the loan companies are great to work with (from what I hear)

kikibaby · October 2009

Thanks everyone. I'm going to go on their website and really study all of my options.

future-weddedbliss · October 2009

"The Masters program is when they teach you how to spell kindergarten." Thanks Kiki. Without you, I would drown in my own ignorance. You are such a lifesaver.

andyandhillary · October 2009

I feel your pain, my friend.I am doing a graduated plan where for 24 months I pay $160-ish (I don't mind people knowing) and then after that I pay $450-ish. If i didn't do this plan I would immediately have to pay $400. ouch. Look into that. It is really helping me out.

TurtlesAllTheWayDown · October 2009

I'm deferring right now. I'm in grad school 2/3 time, so they sort of automatically get deferred. My undergrad loans are down to about $1,000, though, so I'll probably try to pay them off within the next year or two (after paying for the wedding and paying off CC debt), even though they'll be deferred for the next 7-8 years, since I'll be in school.FI can easily put a LOT more towards his loan than he's doing now, but he's figured than with his interest rate of about 1.6%, it might actually cost the student loan company more money if he keeps up his 20 year payment plan than paying off the loan!

goheels05 · October 2009

You're doing this to go back to school? I thought you could defer if you're going back to school.My answer really depends on your situation. First, consolidate if you haven't already. My minimum payment went from $500 a month to $150 a month. And ditto what all Danieliza said--I thought I had 2 different loans with 2 different companies, turns out I had 6 loans with 2 companies. If there's anywhere in your life you can cut costs to be able to make more than your minimum payment, do it. I ran some numbers on my own personal situation, and if I continued making the minimum payment on my loans, I'd be paying them for 30 years and my principal of about $24,000 would morph into $65,000 of interest and principal when all is said and done. That was enough to scare me into paying triple my minimum balance every month.If you still want to reduce your minimum payment, call the loan company and work something out. You can reduce your minimum without any consequences to your credit, and you won't accrue as much interest as you would if you go into forbearance and stop making payments for a few years.

TurtlesAllTheWayDown · October 2009

Oh, is there a way to lengthen the payment plan, like to 20 years from 10? My friend had her loan company automatically put her on the 10 year plan, which would have meant almost $400 a month in payments. 20 years was much more manageable.

TurtlesAllTheWayDown · October 2009

Why take out student loans for a graduate program and then be a kindergarden teacher, which doesn't require a masters degree? The more degrees/credits you have, the higher your pay scale.

future-weddedbliss · October 2009

"The more degrees/credits you have, the higher your pay scale." But if it's not going to offset the additional student loans, it's not really worth it.

kikibaby · October 2009

No, I am not planning on going back to school. I just make no money working for the man.

goheels05 · October 2009

Oh, is there a way to lengthen the payment plan, like to 20 years from 10? My friend had her loan company automatically put her on the 10 year plan, which would have meant almost $400 a month in payments. 20 years was much more manageable.Yeah, you'll pay a lot more in interest though. For me personally, this should be a last resort.I agree that it's rather unnecessary to go to grad school to teach kindergarten. The pay increase is negligible, and I don't see how it's going to greatly benefit your career.

future-weddedbliss · October 2009

to clarify, I am questioning Shellybeth's response in which she states that she's going to grad school to be a kindergarten teacher and then complains about the amount of her student loans. Seems a little silly to me, so I'm just trying to understand...

shellybeth · October 2009

future-weddedbliss,I like watching you guys argue on this board :P But you first mentioned going to graduate school to be a kindergarten teacher and I don't recall anyone saying that.. who are you talking about? The OP isn't even going back to school..And if you were referring to me, I said elementary teacher, which is not kindergarten (I will only be certified in general ed 1-8, and then special ed k-12).

shellybeth · October 2009

And it does make sense to me instead of going back to school to get another bachelor's degree. I cannot teach with my original bachelor's degree... so a choice between 2 bachelor's or a master's just seems obvious to me, but that is my choice I guess.

future-weddedbliss · October 2009

There is not a huge difference between kindergarten vs. elementary. At least when I was a teacher, both made the same amount of money. But, you going to grad school because your undergrad degree does not allow you to teach does make sense. Thanks for the explanation. Now back to your regularly scheduled program...

mwhitson14 · October 2009

Shellybeth, if you live in TN, there is a loan forgiveness program for teachers. But it's pretty crappy. Just wanted to tell you that, maybe you could check out options for your state. Future, actually, according to the new NCLB standards, there is a big difference between kinder and elementary. My university, which is NCATE accredited, actually has it's own Pre-K/K program. Regardless, getting your masters in education opens up more doors (financially and in administration positions) than a simple bachelor's will do. Also, it sounds like shellybeth fell out of NCLB's good graces (not through any fault of her own) so she has to go back to school to get reaccredited. So a master's actually makes more sense. Shellybeth., correct me if I'm wrong.

future-weddedbliss · October 2009

I understand the importance of the job market and how that would factor into your decision to take out loans. However, I was simply asking why it would be necessary to take out grad loan to get a job that doesn't require a grad degree. An answer was provided, and it makes sense in this situation. Is there any other completely irrelevant subject that you would like to discuss?

TurtlesAllTheWayDown · October 2009

It might depend on the state requirements, too. In my grad program, a lot of people are HS teachers and they need to prove continuing education to keep their teaching certificates.FSIL is a high school teacher (so I don't know much about elementary teachers) and the pay difference becomes a lot more pronounced 10-15 years down the road rather than the first year. In Massachusetts at least.

Calypso1977 · October 2009

i only deferred once, adn that was wehn i went to graduate school. i now regret it. i'd be 3 years closer to being paid off. my advice is cut back on your other spending. if you drive an expensive car, sell it and get somethign cheaper or used. if you are having a big wedding, cut that back and put money towards your debt. cut out all of your extras until you get thsi debt taken care of.

Deferring student loans

Re: Deferring student loans

Choose Another Board

Search Boards