Calling your servicer can be intimidating to some people and as a result sometimes you overlook some really obviously questions that may benefit you.
1) What are my payment options?
If you can’t afford your payment there are often times lower payment options you can choose. These options include payments based on your income, a “step program” plan, and plans where you can stretch your loans out to a longer term
2) What are the negative effects of my forbearance/deferment?
Though these options are great if you need them interest will continue to accrue on some or all loans depending on the program and this interest will be added to the principal balance through capitalization. Talking through your options helps you decide if perhaps lower payments may be a more logical way to go.
3) What is the difference between a deferment/forbearance?
While both suspend your payments interest is paid on subsidized loans for deferments but isn’t paid on any loans for forbearances. Plus it is often times harder to qualify for a deferment. Your servicer can help you walk through which options work for you.
4) What are the qualifications for…..
Different payment plans, forbearances, and deferments have different qualifications. There is material out there (including your servicers website) to determine what you do and don’t qualify for however once you reviewed this info your servicer can help you fill in any blanks you have or answer still lingering questions.
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