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School Loan Consolidation
Can I get a
deferment or forbearance on a
School Consolidation Loan?
You will be eligible for a deferment or
forbearance on the Consolidation loan as
long as you meet the eligibility
requirements. It is also possible that you
will lose some deferment options by
consolidating.
What is deferment?
Deferment is a postponement of repayment
under various, specific circumstances
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For Federal Perkins Loans, subsidized FFEL
Stafford Loans, and subsidized Direct
Stafford Loans, you don't have to pay
principal or interest during deferment.
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For unsubsidized FFEL Stafford Loans,
unsubsidized Direct Stafford Loans, FFEL
PLUS Loans, and Direct PLUS Loans, you can
postpone paying principal, but you (or your
parents, for PLUS Loans) are responsible for
the interest. You can pay the interest
during the deferment period, or the loan
holder can capitalize the interest when the
deferment ends. Remember that capitalization
will increase the loan balance.
My loans are currently deferred or on
forbearance.
Will my School Consolidation loan
automatically be put on a deferment or
forbearance?
If you qualify for a deferment or
forbearance, you will need to provide the proper documentation to
put your School Consolidation loan on a
deferment or forbearance.
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