Posted on | May 21, 2012
Unemployment is one of the most dreaded situations especially when you have a big student loan to pay. Even if you just got out of college, not being able to find a job right away can be very scary to someone who needs to make payments to his outstanding payables in school right away.
When you are unemployed, you can request for a student loan unemployment deferment until you will be able to find a job again. You need to make sure that your lenders are informed of your current economic status and that you are unable to make payments for the time being.
To up your chance of being granted a student loan unemployment deferment, you need to present the necessary documents and evidences that would warrant the veracity of your case. This does not only mean you presenting some documents that would attest to your being unemployed but you also need to be able to convince the authorities that you are doing all your best in finding a new job or a new source of income.
This is to prevent fraudulent claims of being unemployed. Many would take advantage of this privilege to defer payment because they really wanted to evade the responsibility to pay and live off on government support. One of the best proofs that you are hard up on cash or unemployed is an unemployment check.
A student loan unemployment deferment can be applied to a 6 month period. After 6 months, the deferment stops and your account reverts back to normal. Effecting the deferment back after the 6 month cycle is not automatic. Hence if you wish to continue the deferment, you must inform the lenders that your economic condition has not yet improved. Likewise when you found work again, you must inform the lender too that you no longer need the deferment because you are now financially able to make payments.
Three years deferment maybe awarded to certain applicants depending upon the conditions set forth by this system. The most important thing about deferment is to not abuse it because the earlier you start paying off your debt, the earlier you will be out of it.