What to do if you can't pay your student loans
10/19/2010
By Credit.com Staff
For example, those who are unemployed or face economic hardship may have the option of postponing their payments with a deferment, according to a report in the Boston Globe. To qualify for such a deferment, a consumer needs to work 30 hours a week or less and be actively seeking a full-time job. They must also renew the deferment every six months, and these can last for a lifetime maximum of three years.
In addition, consumers that took out their oldest federal student loan after October 7, 1998, and have at least $30,000 in loans, can extend their repayment period from 10 years to up to 25. However, this option will increase the interest they pay, the report said.
Delinquent federal student loans are one of the few items that will not be erased after not being paid for an extended period. Instead, they will stay on a consumer's credit report until they are paid again.
