LOAN DEFERMENT QUESTION!!!

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LawSchoolMNGirl22
Posts: 5
Joined: Wed Nov 03, 2010 5:59 pm

LOAN DEFERMENT QUESTION!!!

Postby LawSchoolMNGirl22 » Wed Nov 03, 2010 6:04 pm

I am a 3L, trying to buy a house. They want confirmation that my loans are deferred for at least 12 months. I get letters from the Direct Loans Program very regularly, stating that my loans are deferred through November 2013. I just realized that the typical deferment period is 6 months. Is this an error? How do they know if I am going to continue with my schooling? If I need to, I suppose I could take some part-time summer classes to keep my deferred status long enough to constitute "12 months" of deferment to close on the house on November 30th...

I don't really want to bring this potential "error" to their attention, but I am really stressing about this now!!

Does anyone else have insight on this topic?? Any help??

Thanks!!!

lolol10
Posts: 181
Joined: Sat Oct 09, 2010 2:39 pm

Re: LOAN DEFERMENT QUESTION!!!

Postby lolol10 » Wed Nov 03, 2010 6:13 pm

LawSchoolMNGirl22 wrote:I am a 3L, trying to buy a house. They want confirmation that my loans are deferred for at least 12 months. I get letters from the Direct Loans Program very regularly, stating that my loans are deferred through November 2013. I just realized that the typical deferment period is 6 months. Is this an error? How do they know if I am going to continue with my schooling? If I need to, I suppose I could take some part-time summer classes to keep my deferred status long enough to constitute "12 months" of deferment to close on the house on November 30th...

I don't really want to bring this potential "error" to their attention, but I am really stressing about this now!!

Does anyone else have insight on this topic?? Any help??

Thanks!!!

check with your school to see if they effed up your grad date. they might have sent the clearing house the wrong date. just ask them in a way that if they did they wont change it if you want that extra time--cause thats totally honest and fair. as far as i know i have only heard of a 6 mo grace then additional deferment for unemployment...

LawSchoolMNGirl22
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Joined: Wed Nov 03, 2010 5:59 pm

Re: LOAN DEFERMENT QUESTION!!!

Postby LawSchoolMNGirl22 » Wed Nov 03, 2010 6:29 pm

Yeah I don't know what happened... I am stressing about it, though!

What if I told them that I was going to continue with my Masters? How would they know either way??

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im_blue
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Joined: Sun Apr 12, 2009 3:53 am

Re: LOAN DEFERMENT QUESTION!!!

Postby im_blue » Wed Nov 03, 2010 7:32 pm

GradPLUS loans have a 6-month grace period after graduation (it's not called deferment). Deferment is for being a full-time student and unemployment or other hardships, e.g. if you get a Master's degree elsewhere that school would send in your enrollment certification which defers your loans.

LawSchoolMNGirl22
Posts: 5
Joined: Wed Nov 03, 2010 5:59 pm

Re: LOAN DEFERMENT QUESTION!!!

Postby LawSchoolMNGirl22 » Thu Nov 04, 2010 9:11 am

Yes sorry, I am currently in "in-school deferment" and will be graduating in May. Then, I have a 6 month grace period until I will go into repayment.

Renzo
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Joined: Tue Dec 02, 2008 3:23 am

Re: LOAN DEFERMENT QUESTION!!!

Postby Renzo » Thu Nov 04, 2010 9:35 am

LawSchoolMNGirl22 wrote:Yes sorry, I am currently in "in-school deferment" and will be graduating in May. Then, I have a 6 month grace period until I will go into repayment.

Is the 2013 date based on your in-school deferment? Because if so, that date is meaningless. They can put any date on there and it's meaningless, but the minute you leave school, you come out of deferment.

If you just need proof for buyng the house, use the letter with the 2013 date. But plan on the bills coming 6mos after graduation.

LawSchoolMNGirl22
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Joined: Wed Nov 03, 2010 5:59 pm

Re: LOAN DEFERMENT QUESTION!!!

Postby LawSchoolMNGirl22 » Thu Nov 04, 2010 9:43 am

That's kind of what I mean... do they just put that on there because I am currently in school, and they don't know when I will be out?

I figured it was kind of a place-holder number... they don't know when I will be out of school, so they just put that on there for now. When I graduate and don't enroll in school again, then I will go into repayment.

I gave them the letters, and the lender insists that they need to have this conference call and have it checked out. They haven't flagged it yet, but apparently this is just what they do. How do they know that I will be graduating? I am hoping that the 2013 place-holder date will be listed on whatever database that they are looking at...

I am planning for the bills to start coming 6 mos. after graduation... I have been just assuming that this is a meaningless date because they don't know when I will be out of school.

So then, why does the lender put so much value on it?

Renzo
Posts: 4265
Joined: Tue Dec 02, 2008 3:23 am

Re: LOAN DEFERMENT QUESTION!!!

Postby Renzo » Thu Nov 04, 2010 6:25 pm

LawSchoolMNGirl22 wrote:That's kind of what I mean... do they just put that on there because I am currently in school, and they don't know when I will be out?

I figured it was kind of a place-holder number... they don't know when I will be out of school, so they just put that on there for now. When I graduate and don't enroll in school again, then I will go into repayment.

I gave them the letters, and the lender insists that they need to have this conference call and have it checked out. They haven't flagged it yet, but apparently this is just what they do. How do they know that I will be graduating? I am hoping that the 2013 place-holder date will be listed on whatever database that they are looking at...

I am planning for the bills to start coming 6 mos. after graduation... I have been just assuming that this is a meaningless date because they don't know when I will be out of school.

So then, why does the lender put so much value on it?

My assumption is that they are trying to approve you for more money than they actually think you can afford, and they have some internal rule that allows them to pretend your student loans don't exist if they are deferred for at least a year.

McKyle025
Posts: 1
Joined: Thu Nov 04, 2010 9:39 pm

Re: LOAN DEFERMENT QUESTION!!!

Postby McKyle025 » Thu Nov 04, 2010 11:16 pm

It is an Error because your right the typical deferment for a loan is 6 months and 1 year is too long for a deferment. You should inform them that you are graduating and it cannot exceed the deferment period they have given. Like you said you are receiving letters from Direct Loans Program regularly if you’re those you can shoe it so they can validate it and correct their error.

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JazzOne
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Re: LOAN DEFERMENT QUESTION!!!

Postby JazzOne » Thu Nov 04, 2010 11:19 pm

McKyle025 wrote:It is an Error because your right the typical deferment for a loan is 6 months and 1 year is too long for a deferment. You should inform them that you are graduating and it cannot exceed the deferment period they have given. Like you said you are receiving letters from Direct Loans Program regularly if you’re those you can shoe it so they can validate it and correct their error.

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