Direct/ Forbearance

[backinVA]

I didn't see a SL newbie section, and search didn't help much so here's my sit.

 

I've got $40K+ with Direct and I've requested a one year forbearance on it twice. I did it online with very little trouble and they were approved no problem. I simply can't afford a payment right now (or in the near future) despite that my payment won't be over 20% of my gross. I live in a high cost of living area and my job barely pays enough to cover living expenses for family of 5. ANYWAY... I know I can consolidate to get the payments lower and extended out further so I don't default, but does anyone know how often they'll just give me a pass for a year at a time?

 

Just need to know what to gear up for when the time is up in 6 months.

 

Thanks,

 

BackinVA

[TxQuiltGirl]

I didn't see a SL newbie section, and search didn't help much so here's my sit.

 

I've got $40K+ with Direct and I've requested a one year forbearance on it twice. I did it online with very little trouble and they were approved no problem. I simply can't afford a payment right now (or in the near future) despite that my payment won't be over 20% of my gross. I live in a high cost of living area and my job barely pays enough to cover living expenses for family of 5. ANYWAY... I know I can consolidate to get the payments lower and extended out further so I don't default, but does anyone know how often they'll just give me a pass for a year at a time?

 

Just need to know what to gear up for when the time is up in 6 months.

 

Thanks,

 

BackinVA

 

 

You get three years of forebearance, but remember, you're still accruing interest. Also, if you haven't already consolidated, you'll want to get that started before 7/1, when rates will go to 6.8% fixed.

 

I would suggest consolidating with direct loans if possible because they have several different payment plans - like income contingent.

 

Best of luck to you.

[backinVA]

I would suggest consolidating with direct loans if possible because they have several different payment plans - like income contingent.

 

 

So there's no downside to refi while in forbearance?

 

I'm still 7 credit shy of my degree, so I may be able to get my employer to pay for the last of it and put me in IN SCHOOL status for another term. If so, do they remember the 2 years I've already gotten deferred?

 

Thanks for your insight.