How long can you defer federal loans?

[pluckman4]

I graduated in summer of '06, so my student loans began like 6 months after. I have them through Student Assistance Foundation.

 

I did deferment for a number of years, pretty sure one year was because I was unemployed from spring of '07 to 'spring of '08. I can't remember the number of years I deferred but I think it was 3 total. The other two years were probably economic hardship.

 

I then went on an IBR plan that I have been eligible every year, with $0 monthly payments.

 

The problem is the government will stop making interest payments on the subsidized loan in May. ( i have a 16k subsidized loan and a 2.7k unsubsidized loan through SAF, I think originally Direct loans). This will no doubt amass hefty interest down the road if I keep putting off any payments.

 

Good news is I have no lates.

 

My question is: can I defer at least another year to fight off more interest on the larger, subsidized loan?

According to income/family size, I would be eligible easily, but I am not sure if I am eligible since I have deferred previously. Like I said, At least one year of deferment was due to unemployment and the rest I think due to economic hardship.

 

If I can defer, I plan on saving up to make one large payment down the road that will tackle a decent portion of principle.

[pluckman4]

from http://www.direct.ed.gov/postpone.html for deferment

• unemployed or unable to find full-time employment (for a maximum of three years);
• experiencing an economic hardship (including Peace Corps service) as defined by federal regulations (for a maximum of three years);

Does this mean max of three years total or max three years for each category of deferment?

[pluckman4]

"My maximum cumulative eligibility for an Economic Hardship Deferment on my Direct Loans is 36 months. My maximum cumulative eligibility for an Economic Hardship

Deferment on my FFEL Program Loans is a 36 months. Except for a deferment based on condition (3), as described in Section 2, I must reapply every 12 months if I continue

to meet the requirements for an Economic Hardship Deferment."

This is from my deferment application through my loan provider... so yeah I think I have to deal with the interest accruing, or start making payments to minimize it.

Is there any way around this?

Edited March 25, 2014 by pluckman4

[pluckman4]

i called SAF, US Dept of Edu, and student finacial aid foundation, and I'm pretty much stuck with what i got.

my loans are FFEL btw.

guess it could be worse... i could be in default.

theres a deal where if u set up auto payments, theyll shave.0.25% interest. but since my monthlt payment is $0.00, they wont letme!

[hodap2001]

Since your monthly payments are 0.00 it makes sense that you won't be eligible for the 0.25% discount. You are not paying principal and interest.

 

Good luck to you!