The Disadvantages of Perkins and Student Education Loans by Jason Spencer Student Loan

Jason Spencer Student Loan

Even though student loans can give you an enormous number of opportunities, there are also some serious consequences if you cannot pay them back. Unfortunately, each day, a number of factors are serving to drive the economy deeper into the likelihood of a depression. As a result, the chances of being able to afford to pay back your student loans is becoming significantly risky according to Jason Spencer Student Loan.

To begin, it is important to realize that obtaining a college education will not automatically guarantee a good job or a high paying career. In addition, you will also find that a Bachelor’s degree and even a Master’s degree does not carry as much weight as it used to. As a result, you may have to bear the financial burden of obtaining your masters and Ph.D. in order to achieve a high wage earning potential. At the same time, you may find your choice of graduate degree programs limited according to Jason Spencer Student Loan.

Consider that many universities are suffering from a lack of sufficient federal and state funding. As a result, some may be cultivating students from overseas. In some cases, the university may receive funding from the foreign country to pay for tuition, as well as fellowships and other stipend programs. As may be expected, this has the potential to limit the opportunities for people in this country to compete. In the absence of a scholarship, even if the educational backgrounds are similar, clearly, the money from overseas would be an added incentive to the university.

Before taking a student loan, it is very important to consider what your wage earning potential will be. Among other things, you will need to plan on being at least $50,000 in debt before you even get into the job market. While consolidation can help reduce your interest rates, it will not be of much help if you cannot afford to pay your loans.

It is also important to realize that there are some serious consequences for defaulting on federal student loans. Among other things, you cannot file bankruptcy and obtain relief from Perkins loan debt. Even if you obtain your loans through GMAC, you will be forced to pay your loan back.

If you are planning to apply for a student loan, you will need to gather info from a number of sources. Among other things, you will need to study your chosen career field, and find out how much advancement you will get from a particular degree type. If you find that graduate work is necessary, you will need to obtain information related to overseas student demographics. In particular, you will want to gain this information with respect to the program that you want to get into.
Each year, millions of students apply for student loans, hoping that the education they receive will lead to a rewarding financial future. At the same time, many students find that it is impossible to obtain a job that will cover their living expenses plus the student loan payments. While student loan lenders do everything they can to help you manage your loans, there are still times when defaulting on them is inevitable.

Jason Spencer Student Loan

Student Loan Relief Inc

Jason-Spencer-Dallas-Student-Loan-Relief-Inc
Jason-Spencer-Dallas-Student-Loan-Relief-Inc

Understanding the Difference between Loan Delinquency and Loan Default by Jason Spencer Student Loan

Fortunately for those with student loans, lenders understand that people make mistakes. Missing one payment and missing several payments are two different issues in the eyes of lenders, and are treated differently as well according to Jason Spencer Student Loan.

  • Loan Delinquency: A loan becomes delinquent the day after the missed due date. The loan remains in delinquent status until the borrower takes an action such as payment, deferment, or forbearance.
  • Loan Default: A loan goes into default when a person fails to repay according to the terms of the agreed promissory note. True, by being late on a payment, you are not adhering to the promissory note. However, there is a time lapse lenders and the federal government will allow before the loan is officially considered to be in default status. For example, most federal student loans will not be moved into default status until after the person has gone 270 days without making any payments.

Consequences for One Late Student Loan Payment

For now, let’s assume that your loan is delinquent, and that you have only one missed payment at this time. The possible consequences of a delinquent loan include the following:

  • Ding on Your Credit Report: For Federal student loans, delinquency is typically reported to the three major credit bureaus (TransUnion, Equifax, and Experian) after 90 dayshas passed. The length of time afforded before reporting to a credit bureau is different for private loans and for each lender; for example, Sallie Mae usually reports delinquent private loans after 45 days. Usually if you are not 45 days late, you won’t incur a bad mark on your credit report – at least, not yet according to Jason Spencer Student Loan.
  • Late Fees: There is typically a grace period on delinquent loans before a late fee is assessed, though it varies by lender. Sallie Mae, for example, issues a late fee of 6% of your minimum payment after one late payment that is at least 15 days past your due date.

In order to find this information, I actually had to call Sallie Mae and ask – they don’t always make it easy to find. So be sure to call your own lender and ask the same questions so that you understand the consequences of a delinquent federal student loan versus a delinquent private student loan.

Jason Spencer Student Loan

Student Loan Relief Inc

Jason-Spencer-Dallas-Student-Loan-Relief-Inc
Jason-Spencer-Dallas-Student-Loan-Relief-Inc

 

Student loan help: Victims of for-profit Corinthian Colleges get federal relief Jason Spencer Dallas Texas


Former students of the defunct for-earnings Corinthian Colleges and its subsidiaries have the risk of requesting for financial loan discharges thanks to the US Division of Education. Manuel Rapalo has the latest on the tale from our Los Angeles studio. Find RT America in your place: Or view us on the web: Like us on Facebook Comply with us on Twitter Jason Spencer Dallas Texas | jason-spencer-dallas Source
http://bit.ly/2yisEFZ

5 Reasons Student Loans are Bulls**t | Decoded | MTV News Jason Spencer Dallas Texas


Franchesca Ramsey: Introduced to you with adore by: Created by: University student Loans! Whether you dislike them or dislike them, you might be almost certainly likely to have to deal with them in one way or one more. Why? Since above 40 Million youthful(ish) People in america owe above 1.2 Trillion bucks in college student loan personal debt and thousands and thousands of some others have this spectre of personal [ ] The post 5 Reasons Student Loans are Bulls**t | Decoded | MTV News Jason Spencer Dallas Texas appeared first on Jason Spencer Dallas | Fed Student Loan Relief Inc.
http://bit.ly/2wpWT9t

Navient aka Sallie Mae Takes Another Massive Student Loan Scam Loss in Court | Jason Spencer


Student loan giant Navient Corp., the industry’s largest, has suffered a pair of courtroom defeats in its try to block government lawsuits alleging borrowers had been mistreated according to jason spencer dallas. The losses come in a trio of lawsuits filed in January by the U.S. Consumer Economic Protection Bureau and state attorneys common of Washington and Illinois. They collectively allege Navient mistreated hundreds of thousands of student debtors by taking shortcuts to lessen its own costs, even [ ] The post Navient aka Sallie Mae Takes Another Massive Student Loan Scam Loss in Court | Jason Spencer appeared first on Jason Spencer Dallas | Fed Student Loan Relief Inc.
http://bit.ly/2wktiOX

Student Loan Relief Client NELNET FAQ | Jason Spencer Dallas


Student Loan Relief Client NELNET FAQ | Jason Spencer Dallas jason spencer dallas ABOUT YOUR STUDENT LOAN(S) Does Nelnet own my student loan(s)? It is possible that Nelnet owns your student loan, although we also act as a student loan servicer (provide customer service for loans on behalf of many other lenders). Get the details on all of your student loans (ones with Nelnet and with other customer service providers) [ ] The post Student Loan Relief Client NELNET FAQ | Jason Spencer Dallas appeared first on Jason Spencer Dallas | Fed Student Loan Relief Inc.
http://bit.ly/2wf9wEz

Obama Blamed Police For Dallas Shooting And You’re Mad About Trump’s Speech? Jason Spencer Dallas Texas


Guidance ME Patreon.com/VincentJames Guidance TRE Patreon.com/TheRedElephants If you criticized Trump s speech on Charlottesville however you said nothing about Obam blaming cops for the Dallas law enforcement shootings you are the incredibly definition of a hypocrite. Here is whyJason Spencer Dallas Texas The post Obama Blamed Police For Dallas Shooting And You re Mad About Trump s Speech? Jason Spencer Dallas Texas appeared first on Jason Spencer Dallas | Fed Student Loan Relief.
http://bit.ly/2fj3R9q

Jason Spencer Dallas Response to Cristin Severance’s CBS Local News Story about Dallas Based Student Loan Relief Inc


Jason Spencer Dallas Response to Cristin Severance s CBS Local News Story about Dallas Based Student Loan Relief Inc Coming Soon work in progress Sherrie Fuller got her accounting degree while raising 6 kids She got her degree after all of her children were adults Student Loan Relief is not a charity Correct, nor do we say we are not on the web nor to any clients.  However, Cristin was filming at the [ ] The post Jason Spencer Dallas Response to Cristin Severance s CBS Local News Story about Dallas Based Student Loan Relief Inc appeared first on Jason Spencer Dallas | Fed Student Loan Relief Inc.
http://bit.ly/2w9s8FJ

The Student Loan Default –  The Unknown Key Factors Makes Pay You More | Jason Spencer Dallas


The Student Loan Default   The Unknown Key Factors Makes Pay You More | Jason Spencer Dallas In 2016, the outgoing graduates had to pay $37,000 (average) as a student-loan debt. It made 2016 grades the most liable in the American History. But, two decades ago, where most of the students didn t take student-loan. At that time, some of the students did owe to pay $10,000 or less. Now, [ ] The post The Student Loan Default   The Unknown Key Factors Makes Pay You More | Jason Spencer Dallas appeared first on Jason Spencer Dallas | Fed Student Loan Relief Inc.
http://bit.ly/2xYwgJp

The Student Loan Default –  The Unknown Key Factors Makes Pay You More | Jason Spencer Dallas

The Student Loan Default –  The Unknown Key Factors Makes Pay You More | Jason Spencer Dallas

 

In 2016, the outgoing graduates had to pay $37,000 (average) as a student-loan debt. It made 2016 grades the most liable in the American History. But, two decades ago, where most of the students didn’t take student-loan. At that time, some of the students did owe to pay $10,000 or less. Now, 70% of recent college students are borrowing fund for their higher educations.

You heard that students defaulted in millions on their loans. The irony is the students with low-incomes are the victims of this crisis. They were dreaming about better life after graduation, but staggering debts at their necks. This student-debt crisis is going to impact the economy. Why is it happening is the million-dollar question?

Here are the possible factors that lead to this fiasco by Jason Spencer student loan Relief

  1. College Fees Vs. Inflation

The college cost is the simplest answer this crisis. Today it costs more than a few years back. The university’s fees have increased nearly 230% by adjusting inflation since 1980. The college fees have increased even in Community colleges up to 164% since over past three decades.

  1. The State Funding is a constant decrease for Higher Education.

The American states have been cutting the higher-education funding over the years. With the same rate, there will be no higher-education funding within the half-century. ACE (American Council on Higher Education) mentions this in their recent report. The student-loan burdens become more for public school students than private school.

In some colleges, out-of-state graduates have to pay three times higher than the resident students.

  1. Luxury Spending On Administration

The university presidents are getting paid as well as reputed company CEO. It costs heavily on the college budgets. Moreover, they are not producing any desired results in academics.

The full-time professor in college is getting $428,000 a year. But, the public university president takes staggering four times higher than a professor. In some cases, they are taking over $1 million as a salary.

Spending on luxury dorms and the stadium also add to the budget costs. The expenditure on the competition between universities further adds fuel to these expenses. No one is practicing the cost-efficiency in any of the college campuses according to Jason Spencer Dallas.

  1. Lack of knowledge on Student-Loan

For some less degree, students have to take the blame on themselves. The private lenders have 20% share of total federal loans that offer to undergraduates. The students don’t understand that they have to pay more on lender’s capital.

Another part of the burden comes from the online transaction. Students are ignoring or not aware the fine print details of underwritings. The universities have to educate about the student-loan lot better. Also, understaffed financial-aid officers and inadequate economic training are other reasons that add to this mess. A Recent study showed that only five financial officers are available for 4,000 students.

  1. Lack of Proper Planning

There is no coordination between education department and universities. No one is interested in taking the blame for this debt crisis. They are interested in pointing fingers at each other.

  1. Wages Not Raise In Year.

The stagnation of middle-class workers’ salaries is one of the primary causes of Students-debt. Meanwhile, low-income wages fell considerably. So, education for workers’ students becomes costlier. They pushed to borrow money to meet their deficit. Also, the lending process made easy by the government.

People don’t understand that debt is not the solution. Only Income growth is answered. The generation of baby boomer not educated about financial sector defaults. They’re not focusing on economic growth, and they love to borrow from lenders.

The tuition fees become higher due to easy access to loans. The Federal spending on education has grown 50-times since 1970. It gives free-hand to colleges to raise college fees.

However, this debt can be managed by qualified to refinance lenders. The Jason Spencer Dallas offers to refinance for the students-loan to pursue their dreams. The qualified financial staffs make sure that you know the foot print of underwritings.

 

Jason-Spencer-Student-Loan-Relief-Inc-Dallas-2
Jason Spencer Student Loan Relief Inc Dallas

Jason Spencer Dallas

18 States Sue Trump Over Shutting Down Student Loan Relief Programs | Jason Spencer Dallas

18 States Sue Trump Over Shutting Down Student Loan Relief Programs | Jason Spencer Dallas

More than one-third of U.S. states on Thursday sued the U.S. Education Department and Secretary Betsy DeVos over the current suspension of guidelines that would have swiftly canceled the student-loan debt of folks defrauded by Corinthian Colleges Inc and other for-profit schools.

Last month DeVos pressed pause on the guidelines, due to take the impact on July 1, saying they necessary to be reset.

Massachusetts, 17 other states and the District of Columbia said in a filing in U.S. District Court in Washington, D.C. the department broke federal law in announcing the delay with limited public notice and chance to comment.

DeVos, a Republican, has said accelerating the debt cancellation approach would put taxpayers on the hook for important fees, and a delay is needed while current litigation in California over the rules functions by way of the legal technique.

“With this ideologically driven suit, the state attorneys general are saying to regulate initial, and ask the legal queries later,” stated Education Department Press Secretary Liz Hill in a statement, adding the guidelines had been adopted “via a heavily politicized process.”

Customer groups Public Citizen and Project on Predatory Student Lending sued on Thursday to lift the delay as well.

The rules have been finalized in the last days of the administration of President Barack Obama, a Democrat who overhauled federal student lending.

Following Corinthian, a for-profit chain collapsed in 2015 amid government investigations into its post-graduation employment rates, the administration began drafting rules to support students caught with outstanding loans they had taken out for Corinthian tuition.

Wanting to preserve students from acquiring loans they could not repay, Obama particularly targeted for-profit, profession colleges that guarantee students they will find jobs right after graduating and can charge high tuition.

The attorneys basic for California, Connecticut, Delaware, Hawaii, Illinois, Iowa, Maryland, Minnesota, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia and Washington, all Democrats, also signed onto Thursday’s lawsuit.

They said the department and DeVos had been making use of the pending litigation as “a mere pretext” to repeal the rules and replace them with a single that “will remove or dilute student rights and protections.”

The $1.4 trillion student-loan market became a hot-button problem in last year’s presidential campaign. Democrats sought to preserve Obama’s reforms, although Republicans such as then-candidate for President Donald Trump mentioned the government ought to “get out of the business” of student lending.

Jason Spencer Student Loan Relief Inc Dallas
Jason Spencer Student Loan Relief Inc Dallas

Jason Spencer Dallas

How to Pause Your Student Loan Payments | Student Loan Forbearance’s & Deferment’s | Jason Spencer Dallas

How to Pause Your Student Loan Payments | Student Loan Forbearance’s & Deferment’s | Jason Spencer Dallas

According to Jason Spencer Dallas, Students are burdened with student loan debt like never before. Americans owe over $1.4 trillion in student loan debt and the average graduate walks away with $37,172 in debt. Keeping up with your payments can be difficult, especially if you’re facing hardships like unemployment or a medical emergency.

If you’re in a tough spot, you have options you can use so you don’t default on your loans. If you have federal student loans, you can use deferment or forbearance to get through a rough patch. While using either option is not ideal, they can be a tool to help you get back on your feet according to Jason Spencer Dallas.

Student loan deferments

Student loan deferment is a federal repayment option that allows you to pause your student loan payments for up to three years. Depending on the type of loan you have, you may not be responsible for interest charges that accrue on your loan.
ProsIf you defer your student loans, you can stop making payments without entering default or damage your credit. That can free up money in your budget to pay for other demands, such as medical bills or rent. Having that breathing room can allow you to focus on getting your finances back on track.

If you have subsidized student loans, the government will pay interest that accrues while your debt is in deferment.

Jason Spencer Student Loan CBS Local News BBB Better Business Bureau Dallas BBB DFW

ConsIf your loans are unsubsidized, the government won’t cover the interest that accrues on your debt. That means your loan balance can grow while you’re in deferment and you can end up paying back thousands more in interest once deferment is over.
How to apply for student loan deferment.  To be eligible for student loan deferment, you must meet one of the following criteria:

  • You are enrolled at least half-time at a qualifying university.
  • You are unemployed or unable to find a full-time job.
  • You are experiencing an economic hardship or serving in the Peace Corps.
  • You are on active duty military service.

Deferments are not automatic

To request a deferment, you must complete an Unemployment Deferment FormIn-School Deferment Form, or Economic Hardship Form. You should send the appropriate form and documentation showing you meet the eligibility requirements to your loan servicer for their review.

If you don’t qualify for student loan deferment for whatever reason, you might still be able to pause monthly payments through student loan forbearance.

Student loan forbearance’s like student loan deferments can postpone student loan payments or lower monthly payments via forbearance. If you qualify for forbearance, you can stop making payments for up to 12 months.

There are two types of forbearance: mandatory and discretionary.

With mandatory forbearance, the government requires loan servicers to grant you a forbearance if you meet one of the following criteria:

  • You are serving in a medical or dental residency program.
  • The monthly payment on your loans is 20 percent or more of your gross income.
  • You are a teacher serving in an area that would qualify you for Teacher Loan Forgiveness.
  • You are serving in an AmeriCorps position.

Under discretionary forbearance, your loan servicer decides whether or not you qualify. You may be eligible if have financial difficulties, medical expenses, or other acceptable cause.

Pros:
If you’re facing a short-term emergency, such as a job loss, forbearance can give you much-needed relief while you get back on track. By getting your payments reduced or eliminated for a short time, you can get your finances in order without falling behind on your loans.

Cons:
Forbearance can be a useful option if you’re facing money problems, but there are some consequences to consider. Interest continues to accrue on your loans when you’re in forbearance and you’re responsible for paying that back, regardless of your loan type. That can add to the cost of your loans and make it harder to become debt-free.
However, forbearance is still a smarter option than not making payments and risking student loan default.

If you’re applying for a discretionary forbearance, you must complete the General Forbearance Request Form and submit it to your lender.

For mandatory forbearance applications, you need to complete the form that matches your situation, such as the Student Loan Debt Burden Forbearance FormMedical/Dental Residency Form, or AmeriCorps Service Form. Send the form with documentation to back up your claim to your loan servicer.

Before applying for deferment or forbearance
When you apply for deferment or forbearance, remember that you must keep making student loan payments until your loan servicer notifies you that they’ve accepted your request. Otherwise, you could become delinquent on your loans.

Even though deferment or forbearance can extend your repayment term and cause interest charges to build up, either option is preferable to entering into default. These two programs can provide much-needed relief if you’re facing a financial emergency.

For more information about federal loan repayment options, learn how to lower your payments with income-driven repayment plans.

Jason-Spencer-dallas-Student-Loan-Relief-Dallas
Jason-Spencer-Student-Loan-Relief-Dallas

Jason Spencer Dallas
Jason Spencer DFW CBS Local News BBB Better Business Bureau

ALL YOU NEED TO KNOW ABOUT STUDENT LOAN REHABILITATION | JASON SPENCER DALLAS

ALL YOU NEED TO KNOW ABOUT STUDENT LOAN REHABILITATION BY JASON SPENCER DALLAS

Jason-Spencer-Dallas-Texas-Student-Loan-Relief-bus

Defaulting on a student loan can have serious financial consequences without the help of a company like Student Loan Relief. Your credit report is negatively affected, the government can garnish your wages and you can lose your IRS income tax refunds. If you are having financial difficulties in making your monthly loan payments, then making the decision to default on the loan is the worst decision you can make according to Jason Spencer Dallas.

The fact that you are in a financial abyss and unable to meet your monthly loan payments does not mean that you do not have any other options. This is true if you have a private student loan or a federal loan.

If you have a Direct Federal Loan or a Federal Family Education Program (FFEL) then the federal government is willing to work with you in deciding upon a more convenient payment terms.

If you have a Private Student Loan, you may find it a bit more difficult in arranging for more convenient terms with your private lender. However, this does not mean that convenient payment terms are impossible. All you need to do is to discuss your financial situation with your lender and request for easier payment options. If they refuse to work with you, you can submit a complaint with the Consumer Financial Protection Bureau and request that they help you in negotiating an easier payment scheme.

During these tough economic times, a rise in the number of students who default on their student loan payments has been reported. The increase has caused many concerns with the government as this situation can be a cause of more economic difficulties.

This is one of the reasons why the federal government is willing to negotiate easier payment terms so that the loan does not fall into default or if it is already in default, it can return to repayment status.

If you have a federal student loan that is in default, you will need to contact the Department of Education (DE) to negotiate easier payment terms. The DE will take a look at your financial capabilities and work with you on a rehabilitation program.

Once you have agreed to a monthly payment amount, you will need to make 9 consecutive payments without being delayed. Should you delay on a single payment, you will need to restart the program.

One thing to remember is that if the government has already started wage garnishment, the amount collected by the government from this is not counted towards your payment under the rehabilitation program.

 

However, after you complete the rehabilitation program, wage garnishing or other methods used by the government to collect on your loans, will be stopped. Your loan will be returned to the repayment status and your credit report will no longer reflect a default loan status.

It is extremely important that you do everything you can to get into a rehabilitation program should your loan be in a default status. Once your credit report is affected, you will have more difficulties in applying for other loans as many lenders may refuse to provide you with credit terms.

Jason Spencer Student Loan Relief Inc Dallas
Jason Spencer Student Loan Relief Inc Dallas

Jason Spencer Dallas

Student Loan Relief Inc

How to Pause Your Student Loan Payments | Student Loan Forbearance’s & Deferment’s | Jason Spencer Dallas

How to Pause Your Student Loan Payments | Student Loan Forbearance’s & Deferment’s | Jason Spencer Dallas

According to Jason Spencer Dallas, Students are burdened with student loan debt like never before. Americans owe over $1.4 trillion in student loan debt and the average graduate walks away with $37,172 in debt. Keeping up with your payments can be difficult, especially if you’re facing hardships like unemployment or a medical emergency.

If you’re in a tough spot, you have options you can use so you don’t default on your loans. If you have federal student loans, you can use deferment or forbearance to get through a rough patch. While using either option is not ideal, they can be a tool to help you get back on your feet according to Jason Spencer Dallas.

Student loan deferment

Student loan deferment is a federal repayment option that allows you to pause your student loan payments for up to three years. Depending on the type of loan you have, you may not be responsible for interest charges that accrue on your loan.

Pros

If you defer your student loans, you can stop making payments without entering default or damage your credit. That can free up money in your budget to pay for other demands, such as medical bills or rent. Having that breathing room can allow you to focus on getting your finances back on track.

If you have subsidized student loans, the government will pay interest that accrues while your debt is in deferment.

Cons

If your loans are unsubsidized, the government won’t cover the interest that accrues on your debt. That means your loan balance can grow while you’re in deferment and you can end up paying back thousands more in interest once deferment is over.

How to apply for student loan deferment

To be eligible for student loan deferment, you must meet one of the following criteria:

  • You are enrolled at least half-time at a qualifying university.
  • You are unemployed or unable to find a full-time job.
  • You are experiencing an economic hardship or serving in the Peace Corps.
  • You are on active duty military service.

Deferments are not automatic. To request a deferment, you must complete an Unemployment Deferment FormIn-School Deferment Form, or Economic Hardship Form. You should send the appropriate form and documentation showing you meet the eligibility requirements to your loan servicer for their review.

If you don’t qualify for student loan deferment for whatever reason, you might still be able to pause monthly payments through student loan forbearance.

Student loan forbearance

Like student loan deferment, you can postpone student loan payments or lower monthly payments via forbearance. If you qualify for forbearance, you can stop making payments for up to 12 months.

There are two types of forbearance: mandatory and discretionary.

With mandatory forbearance, the government requires loan servicers to grant you a forbearance if you meet one of the following criteria:

  • You are serving in a medical or dental residency program.
  • The monthly payment on your loans is 20 percent or more of your gross income.
  • You are a teacher serving in an area that would qualify you for Teacher Loan Forgiveness.
  • You are serving in an AmeriCorps position.

Under discretionary forbearance, your loan servicer decides whether or not you qualify. You may be eligible if have financial difficulties, medical expenses, or other acceptable cause.

Pros

If you’re facing a short-term emergency, such as a job loss, forbearance can give you much-needed relief while you get back on track. By getting your payments reduced or eliminated for a short time, you can get your finances in order without falling behind on your loans.

Cons

Forbearance can be a useful option if you’re facing money problems, but there are some consequences to consider. Interest continues to accrue on your loans when you’re in forbearance and you’re responsible for paying that back, regardless of your loan type. That can add to the cost of your loans and make it harder to become debt-free.

However, forbearance is still a smarter option than not making payments and risking student loan default.

How to apply for forbearance

If you’re applying for a discretionary forbearance, you must complete the General Forbearance Request Form and submit it to your lender.

For mandatory forbearance applications, you need to complete the form that matches your situation, such as the Student Loan Debt Burden Forbearance FormMedical/Dental Residency Form, or AmeriCorps Service Form. Send the form with documentation to back up your claim to your loan servicer.

Before applying for deferment or forbearance

When you apply for deferment or forbearance, remember that you must keep making student loan payments until your loan servicer notifies you that they’ve accepted your request. Otherwise, you could become delinquent on your loans.

Even though deferment or forbearance can extend your repayment term and cause interest charges to build up, either option is preferable to entering into default. These two programs can provide much-needed relief if you’re facing a financial emergency.

For more information about federal loan repayment options, learn how to lower your payments with income-driven repayment plans.

Jason Spencer Dallas

Jason Spencer DFW CBS Local News BBB Better Business Bureau