Student loan debt has become so pervasive in the US that many people are seeking ways to get student loan extensions, or even eliminate their student loans altogether through programs like Income-Based Repayment and Public Service Loan Forgiveness.
But how exactly can you get a student loan extension? And what’s involved in that process? This article provides an overview of the steps you can take to extend your repayment period, lower your monthly payments, or eliminate your federal student loans entirely.
The Reason Why Many Students Apply for an Extension
Students who have too many credits left but still need an additional semester or quarter may find it worthwhile to consider extending their student loans. In order to do so, you’ll need to meet certain requirements, including maintaining your full-time enrollment status during that timeframe. If you’re trying to apply for a student loan extension with good reason, here are some steps you can take.
READ ALSO: Branch App Download APK | Branch app Login | Branch Loan Application Online
What is Student Loan Deferment?
Student loan deferment allows student borrowers to postpone payments or interest accrual on their loans for various reasons. The following are some common types of student loan deferment
Who is Eligible to Apply for an Extension?
You must have completed at least 6 months of qualifying repayment in order to be eligible for an IBR/PAYE or REPAYE extension. If you believe you are eligible but are not sure, please call 1-800-4-FEDAID (1-800-433-3243) for assistance.
The Process of Getting an Extension
You’ll have to fill out an application for an interest-free deferment that allows you time to find employment or enter into rehabilitation or graduate school. You’ll also have to submit documentation with your application, such as your most recent federal tax return and pay stubs from your current job (if you’re employed).
If you don’t currently have a job, include information about receiving unemployment compensation, if you qualify. Some lenders require additional documentation, so check with your lender. The process is different depending on which type of loan you have:
Federal Stafford loans: To apply for an interest-free deferment on a Federal Stafford Loan, complete and sign a Request for Interest-Free Period form. Submit it along with all required documentation to your lender.
Perkins loans: To apply for an interest-free deferment on a Perkins Loan, complete and sign a Request for Deferment of Payment form. Submit it along with all required documentation to your lender.
Private loans: Contact your private loan provider directly to determine how to request an extension of repayment terms and any required forms or paperwork needed when applying for one.
READ ALSO: Fairmoney App Download APK | Fairmoney app Download apk Download
What Happens if you Don’t Apply on Time?
If you don’t file your FAFSA on time, you’ll lose out on a lot of potential grant money and possibly student loans. That’s why it’s important to fill out and file your FAFSA as soon as possible; if you don’t apply on time, there are steps you can take to obtain an extension and still qualify for federal aid. To learn more about how getting an FAFSA student loan extension works, read ahead.
What are the Benefits of Getting an Extension?
The student loan grace period may be extended in some cases. There are many reasons why students may need an extension of their grace period, including if they have not completed all of their degree requirements or have not found employment after school. This is what you need to know about student loans and extensions.
READ ALSO: Cashnet USA – Cashnet USA Loans Review – Apply for a Cashnet USA Loan
Things to Consider Before you Extend your Student Loans
Here are a few steps you’ll want to take before going through with a student loan extension. If you can’t make all of these things happen, it may be best to stick with your current payment plan instead.
While you won’t have any extra money coming in, neither will your debt—but at least it won’t grow more. Make sure you feel confident about taking on more student loans before attempting an extension. This is key!
