With a Stafford Loan, there are two ways that it works. Sometimes the deferred student loan is offered by the college itself. The alternative is where private funding is arranged, by a specialist in student loans and guaranteed by the federal government. Repayment is the same in both situations and the loan remains payable under the terms of the agreement.
An alternative, the Perkins deferred student loan, comes through the college and has government funds to back it and is focused on those who cannot afford a loan from any other sector.
You need to remember that there is a range of schedules for deferred student loans that are not as ‘deferred’ as you might want. Getting into one of these without the right plan going forward will give you a tough time, so make sure that you realize fully what you are getting into.
You see, as an example, a ‘Federal Direct Parent Loan for Undergraduate Students’ start their repayment demands within a couple of months of classes starting!
This is not really one of the deferred student loans that you would want to take, if you are in the emptying that water barrel situation. If you do find you have one of these loans, it’s vital to get your budgeting and cash flow well organized well before you start to fall behind.
