Student loan deferment!

iVillage Member
Registered: 02-04-2008
Student loan deferment!
2
Sun, 08-03-2008 - 12:03pm
Ok, I know I'm stupid that I took out the max I could while getting my undergraduate degree and now 12 years later I'm STILL paying off my student loans.
iVillage Member
Registered: 01-25-2006
Sun, 08-03-2008 - 12:57pm

Assuming these are US federal student loans:

You could take it out of deferment but I wouldn't. You can make payments on it while you are in school and if you are able. If they are non-subsidized, you would be smart to pay at least the interest because when you leave school again, they will capitalize the interest and add it to your principal balance. If they are subsidized, you could make some or all of your payment and really make some progress while you are in school because you won't pay interest. There are no tax implications of deferment. I would leave them on deferment so you can have the flexibility.

In terms of the home purchase, it will be a factor in your debt/income ratio but unless you are going to manage to pay it off in this time, it won't change anything to make payments now vs. not. No adverse credit reporting will occur on the deferment.

HTH!

Peggy

iVillage Member
Registered: 02-04-2008
Sun, 08-03-2008 - 3:35pm
Thanks so much!