• http://www.thedebtprincess.com Jessica, The Debt Princess

    I have over $15,000 in school loans. I graduated from college in 1997 with just under $15,000 in student loans. I have paid on them off and on for years. I’ve always had financial problems (I’m working on fixing this now!) and any payments I made over the years have gone to paying back the interest I’ve earned when I wasn’t paying on them.

    If you are on a forebearance (or maybe it’s the deferment) you will still be responsible for the interest each month. If you do not pay it, it goes right back onto the principal balance.

    Moral of your article (in my opinion) & my comment…Borrow mindfully. If you have to take them out, be very smart about how much you borrow and think about the future. It may seem like paying them will be easy when you graduate but it isn’t always that way.

    Sorry for the long reply. I could write a whole post on this (and maybe I should, lol ).

  • Kalen Smith

    I am sorry to hear that. You are right you will be paying interest if you defer. The only thing I need to point out is that it isn’t always possible to graduate with small amounts of debt given the cost of getting an education and the limited resources of people who need to borrow in the first place. But at least be mindful of what you are taking money out for. More expensive housing and a new laptop may not be good if you can get by with what you have. Also, try to get grants and scholarships when possible so that you can minimize the amount of debt you take out.

  • No-one

    taking out a deferment or forbearance is the last thing you should do. Sell a kidney before you to that. My $70,000 loan is now over $300,000 thanks to this. I could easily pay off the original amount now, but not the $300,000 and climbing (I cannot afford the monthly payments), but AES will not even consider negotiating. Now I live in another country and am clinically depressed. And they can still get you abroad too, unless you really move to China or some other country like that.

  • Riain S

    I decided to fake my own death. So far, so good! I’m really enjoying life in Mexico, and my mom bought a new house with my life insurance payout!

  • jhmom

    I am writing on behalf of my daughter who is in college at tht present. The school that she is attending is short of teachers in her field of study and has to fall back to one class this semester. She is terrified that she will have to start paying for her loan before she gets out of school. Any advice on what she can do?

    • willgtl

      If she is still attending school, she should be eligible for deferment, which will stop both the payments and interest clock (Forbearances just stop payments, but the clock is still running) until it expires. You are not expected to repay student loans while still attending school, even part-time enrollment. If she has an unreasonable private loan issuer, instead of a federally subsidized loan, she would need to contact her issuers and discuss it. But as far as a federal student loan, she should have no problem getting a deferment until she graduates.

  • alex

    Also, don’t forget that serving in the Peace Corps can get you a deferment and in some cases pay off part of your loan as well. I served and had my loan deferred for the period I was in the Peace Corps. More details here. http://www.peacecorps.gov/volunteer/learn/whyvol/during/loans/options/

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