Deferments, Forbearance, and Consolidation

You are entitled to defer your student loan payments when applicable

criteria are met. Through deferment you can postpone your scheduled

student loan payments for various reasons, such as unemployment,

economic hardship, and school enrollment. Your lender or servicer

determines if you meet the requirements for a deferment. To ensure

prompt processing of your deferment, please mail it directly to your

lender or servicer. Click on the following link, Student Loan Deferment Forms,

to access the appropriate forms.

Forbearance is an option lenders or servicers can offer in which the lender

permits the borrower to temporarily cease payments, allows an extension

of time for making payments, or temporarily accepts smaller payments than

were previously scheduled. Medical or financial problems that do not meet

the requirements for a deferment might qualify you for a forbearance. During

a forbearance period, the borrower is responsible for paying the interest that

accrues on any loan, even a subsidized loan. If a borrower fails to make

required interest payments during a forbearance period, the lender may

capitalize the unpaid accrued interest.

A lender may grant a discretionary forbearance to assist a borrower or

endorser in fulfilling the repayment obligations of the loan and to help

prevent default. A borrower may request this forbearance by contacting the

lender verbally or in writing. Contact your lender to obtain forbearance forms.

Remember that the lender must approve the forbearance request before

your payments can be suspended.

By consolidating your loans, you might be able to reduce your monthly

payments. Your lender or servicer can help you decide if you are eligible

and if loan consolidation is the best option for you. You can also get

information and download the correct forms from TG Online at www.tgslc.org.