I mentioned previously how awful Spousal Consolidation loans are in terms of getting a forbearance. If you think forbearances are bad, you “ain’t seen nothing yet” till you see what they do with deferments.
Here is how a deferment normally goes. You are unemployed and are receiving Unemployment Benefits. Great! You qualify for an Unemployment Deferment. Unless you have one of these horrible loans. Then if your spouse does not qualify for a deferment you cannot qualify as you both must qualify.
The silver lining? Well if there is one you do not have to qualify for the same deferment. So if you qualify for an Unemployment Deferment and your former spouse is receiving food stamps, then you are able to go on one while they go on an Economic Hardship Deferment. That is assuming you guys have talked in the last five years (unlike a borrower I had last night with their spouse). Because communication is key to getting your loans placed on deferment in this case.
The worst part about these loans? You can’t separate them! Since this type of consolidation does not exist you are not able to apply for any other government backed student loan and without a private loan to pay it off are stuck with this until death (or payoff) do you part.
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