Stsudent Loan Deferment Question Forum

[JDHopeful]

I know this may be the incorrect forum for this, but seeing as I’ve received good advice here before, I post…

I’ve been out of undergrad for about a year and a half now and plan to go to law school next year. I have a good amount of student loans from undergrad, private and government-backed. I’d like to defer the private loans until law school starts this fall, in order to save up some money for living expenses in law school.

My question is, I’m not sure how resistant these loan companies are to deferring private loans. Is there a way to do this?

Any insight/experiences you might be able to share would be helpful…

Thanks!

[SpiteFence]

I'm not sure about how willing private lenders are to grant deferment/forbearance, although I would just caution your strategy. Depending on your goals and expectations, it might be better to take out as much of the private loans as possible now. Interest rates are low now, but who knows over the long run. Also, IBR is the ultimate law school safety net, which your private loans won't qualify for.

[JDHopeful]

Are you saying I won't be able to defer while in law school?

Also, I can't take out the loans until I'm accepted and enrolled, correct?

[northwood]

im not sure about deferring now, but once you are enrolled in law school you wont have to make your monthly payments. If you started making payments now, you will be able to stop making them while you are in school

[JDHopeful]

Yea, that's what I thought...

My question now is, is there any way to defer now for the next 10 months before law school starts (I've been paying in full, on time, for the past year)?

[northwood]

I dont think so. Im also making payments ( have been for over 2 years) and while I would like to save the money now, I keep reminding myself that im lowering the amount owed for school, and increasing the amount of federal loans I can take out at the same time. ( There is a limit to how much federal money you can take out.) Plus, when you are applying for grant money, putting down the monthly payment helps your chances.

If you have worked it into your monthly budget, its not that big of a headache. I am used to workiung around this expense, and have taken another job to build up my savings for school.

[JDHopeful]

Yea, I'm working a full time job, and an additinal part time job to hussle...

I guess I'll stay with it...

[JDHopeful]

In furtherance to this, what does credit card debt do to your chances of getting more student loans for law school?

[SpiteFence]

34 C.F.R. § 685.200:

(B) For purposes of paragraph (c)(1)(vii)(A) of this section, an adverse credit history means that as of the date of the credit report, the applicant--

(1) Is 90 or more days delinquent on any debt; or

(2) Has been the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a debt under title IV of the Act during the five years preceding the date of the credit report.

[JDHopeful]

I'm safe here...

haha; thanks!