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My loans are eligible for a deferment because I’m serving in the military or volunteering in the Peace Corps. What does this mean?

Answer:

A student loan  is a repayment arrangement that postpones your monthly student loan payment for a period of time.


Deferment for federal student loans isn’t generally your best bet. Although and with federal student loans can defer while they serve, there are probably better options available. Although subsidized federal student loans don’t accrue interest during periods of deferment, borrowers that chose this option may be missing out on other benefits, including loan forgiveness.  

Pay what you can on your private loans. Private student loans may also offer deferment or forbearance for borrowers under certain circumstances. Unlike some federal student loans, you are generally still responsible for the interest that accrues during a deferment or forbearance.  Many borrowers are surprised to discover that their student loan debt has grown once they finish their service and begin to repay their loans. Contact your student loan servicer to learn more about your options before you decide to postpone making payments on your student loans.

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