Student Loan Relief

Do not panic since you cannot repay your student loan! The economic recession has had an effect on everyone's pocket making it extremely hard to take care of bills, rent et cetera. Here's how to get help on your student loan payment.

Student Loan Deferment

This allows you to stop repaying your loan for a specific period of time. The package may include a deferred interest charges on subsidized federal loans. The principal is only deferred on the PLUS and unsubsidized loans.

If you have bad credit reports already, then deferment isn't an option for you - sorry! Situations that make someone qualify for deferment include:

• A disability
• Economic hardship
• Family related issues such as maternity leave
• Inability to find full-time employment
• Service in the military, Peace Corps, or public health

Returning To School

Many people are being laid off or are fear graduating since their job prospects are minimal and the only way forward seems to be going back to school. This would make you eligible for a deferment. For those enrolling for an online program, take your time and contact your lender to confirm eligibility. In most cases, enrolling for online degrees at a school which can disburse federal financial aid makes you qualify for deferment.

Many private lenders do not offer loans to students. Indeed recession has made it even more difficult to secure student loans. All hope isn't lost, so just exhaust all federal aid options before resorting to private loans.

Student Loan Forbearance

Students with federal student loans are eligible for forbearance which permits students to postpone payments temporarily or reduce the payment amount. Some qualifying situations for forbearance include: Partial disability, unemployment or other hardships.

Another option may be debt consolidation which essentially involves combining several loans into one monthly payment usually at a lower interest rate. It is not possible however, to consolidate private and federal student loans.