• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

HBCU Lifestyle – Black College Living

  • HBCUs
    • What is an HBCU?
    • History
    • List of HBCUs
    • Notable Graduates
  • Jobs
  • Parents
    • HBCU Rankings
    • Black College Tours
    • College Admissions
    • Financing
    • College Scholarships
    • College Planning
  • Current Students
    • College Life
      • Greek Life
      • Sports
      • Dorm Living
      • College Survival
    • Careers
      • HBCU Career Hub
      • Internships
      • Career Profiles
      • Entrepreneur
    • Research Paper Resources
      • Research Paper Topics: 50 Ideas to Get Started
      • How To Write An Annotated Bibliography
      • Journalism Research Paper Resources
  • Alumni
    • HBCU Shirts
    • Podcast
    • Alumni Spotlight
    • HBCU Merch
    • Jobs
  • Shop
You are here: Home / Parents / College Funding / Understanding Student Debt: Deferment, Forbearance and Consolidation

College Funding

Understanding Student Debt: Deferment, Forbearance and Consolidation

Understanding Student Debt: Deferment, Forbearance and ConsolidationA lot of people equate graduate school with a serious amount of debt. In most cases, it is worth it to go into debt for school. A college education can lead to higher paying jobs and a more fulfilling life. Unfortunately, college costs have skyrocketed in recent years, forcing most young people to obtain a lot of loans to pay for school. A lot of people seek ways in which they can pay off their student loans with ease. There are multiple options, including deferment, forbearance and consolidation.

Debt Deferment

Depending on your circumstances, you can defer your student loan debt. You can do this in cases that you are unable to make payments This can be the case of losing your job, having a poor financial situation temporarily or if you go back to more school. With deferment, you will not have to make any payments on your loan. in some cases, the government will actually pay your interest for you. With a deferment, you are not avoiding paying back the loan, you are just delaying the payments. This is best for anyone that is in a short-term bind.

Forbearance

If you are unable to make your payments and do not qualify for a deferment, you should look into a forbearance. With forbearance, it is possible to not make payments or to lower your payments for up to one year. You will continue to accrue interest on your loans. A forbearance is harder to qualify for; you must have an illness or a financial hardship. To see if you qualify for a forbearance, you should immediately contact the company the lending company.

Consolidation

A lot of people can benefit from consolidating their school loans. This is a great option for someone with a lot of debt. By consolidating, you can lower your monthly payments and get a better interest rate. Remember, interest rates on school loans are usually much lower than other interest rates. Since the interest is deductible, a lot of people are not in a hurry to pay off their student loans. You should look at your financial situation before deciding on if consolidation is the right option.

Get Help

A lot of people can get their student loans paid by someone else. If you are in a certain profession, the government and even some organizations may help. For example, a teacher who teaches in an underprivileged area may qualify to have their student loans forgiven. This is the same for nurses, doctors, or many other professionals that are encountering the possibility of a job that endures hardship and little financial incentive. If you are considering this option, weight the cost of the possible lower salary.

Remember, it was probably worth it to incur your debt and a little student debt is not necessarily bad. This is especially true when comparing it to other kinds of debt. One great thing about student debt is the fact that you can write it off on your taxes. Not only that, student loan interest rates are at historic lows, so if you play your cards right, you can really manage your loans quite well.

Photo Courtesy of BIGSTOCK

December 11, 2012 by Maria Tresna

Reader Interactions

Comments

  1. Cheap Prosolution Pills says

    July 4, 2013 at 8:29 pm

    Eegxaoni poeerie Cheap Prosolution Pills aafeigza iqobfieic.

Primary Sidebar

Search

Follow Us

  • LinkedIn
  • Twitter
  • YouTube

Quick Links

  • Newsletter
  • Jobs and Internships
  • Shop
  • HBCU Colleges List: 107 Great Education Options to Consider
  • HBCU Rankings 2022
  • HBCU College Tours
  • Contact Us
  • About Us

Popular Posts

  • Happy female college student working on research paper topics. Research Paper Topics: 50 Ideas to Get Started
  • HBCU Sororities and Fraternities to Consider The Divine Nine: Sororities and Fraternities on HBCU Campuses
  • A female African American HBCU student poses while smiling and holding her book in her arms. HBCU Rankings 2023: The Top 25 Black Colleges from U.S. News
  • Bowie State's nursing program students check a patient in class simulation. Top 10 HBCU Nursing Schools Rankings for 2022 by RN to BSN
  • The oldest HBCUs: Cheyney University students pictured from the early 1800s. Cheyney is one of the first five Historically Balck Colleges established in the Nation. The First HBCU: Remembering The Oldest Black Colleges In the Nation

Before Footer

Follow Us

  • LinkedIn
  • Twitter
  • YouTube

Subscribe to our newsletter

Sign up to receive weekly HBCU news, jobs, and advice in your inbox.

Sign Me Up

Footer

About HBCU Lifestyle

The spirit and camaraderie of black college living is a lifestyle - the HBCU lifestyle! We're committed to keeping you connected to the black college living experience, bringing you the latest on everything, from scholarships and dorm living to Greek life and alumni giving.


Contact Us

Latest from the Blog

  • NBCU Academy: 3 HBCUs Added to NBC’s Journalism Program
  • JSU Student Success Awarded $9 Million
  • PVAMU’s College of Nursing Helping to Cultivate Inclusive Classrooms
  • HBCU Go Partners With Award-Winning Movie ‘Freedom’s Path’
  • Newsletter
  • Jobs & Internships
  • Shop
  • List of HBCUs
  • HBCU Rankings
  • HBCU Scholarships
Copyright © 2010-2023 HBCU Lifestyle, LLC. All rights reserved.
Contact Us | Sitemap | Terms of Use | Privacy Policy
Get the best of the Black college experience delivered to your inbox.
Your email address:*
Name:*
Subscribe to (select all that apply):*





Please wait...
Please enter all required fields Click to hide
Correct invalid entries Click to hide
No spam, ever. Promise. Powered by FeedBlitz