How to Defer Parent PLUS Loan?
As a parent, taking the necessary steps to support your child’s education is often a top priority. Parent PLUS loans are a popular choice for many parents to help finance their child’s college education. However, there may be situations where you need to defer your Parent PLUS loan payments temporarily. In this article, we will discuss the deferment process and provide answers to commonly asked questions related to Parent PLUS loan deferment.
Deferment is a valuable option that allows you to temporarily postpone making loan payments. During the deferment period, no interest accrues on the loan, providing you with temporary financial relief. To defer your Parent PLUS loan payments, follow the steps outlined below:
1. Assess your eligibility: Determine whether you meet the requirements for deferment. Parent PLUS loans are eligible for deferment if the parent borrower or the student on whose behalf the loan was obtained is enrolled in school on at least a half-time basis.
2. Contact loan servicer: Reach out to your loan servicer to initiate the deferment request. They will provide you with the necessary forms and guide you through the process. If you are unsure about who your loan servicer is, you can find this information on the National Student Loan Data System (NSLDS) website.
3. Complete the deferment application: Fill out the deferment application accurately and provide any required documentation to support your request. Common eligibility documentation includes enrollment verification for the student or proof of unemployment or economic hardship.
4. Submit the application: Once you have completed the application and gathered all the necessary documents, send them to your loan servicer by mail or through their online portal, if available. Retain copies of your application and supporting documents for your records.
5. Await confirmation: After submitting your deferment application, it usually takes some time for the loan servicer to review and process your request. During this period, continue making your payments until you receive confirmation that your deferment has been approved.
6. Utilize alternative options: If deferment is not possible or desirable for your situation, consider other repayment options such as income-driven repayment plans, which offer more flexibility in loan repayment based on your income and family size.
Here are some commonly asked questions regarding Parent PLUS loan deferment:
1. Can I defer my Parent PLUS loan if my child is enrolled part-time?
No, your child must be enrolled at least half-time in an eligible program for deferment.
2. Can I defer my Parent PLUS loan while I am unemployed?
Yes, you may qualify for unemployment deferment if you are actively seeking but unable to find full-time employment.
3. Do I need to make payments while my deferment application is pending?
Yes, it is recommended to continue making payments until your deferment is approved to avoid any potential delinquency or negative impact on your credit score.
4. How long can I defer my Parent PLUS loan?
Parent PLUS loans can be deferred for up to 12 months at a time. However, the total deferment period cannot exceed the maximum deferment limit set by your loan servicer.
5. Can I defer my Parent PLUS loan if my child is in graduate school?
Yes, as long as your child is enrolled at least half-time in a graduate program, you are eligible to seek deferment.
6. Can I defer my Parent PLUS loan while on active military duty?
Yes, active-duty military service qualifies for deferment, so you may defer your loan payments during this period.
7. Is there a deferment option for economic hardship?
Yes, if you are experiencing economic hardship such as unemployment, you may qualify for an economic hardship deferment.
8. Can I defer my Parent PLUS loan if I am on maternity or paternity leave?
In most cases, you will not be eligible for deferment due to maternity or paternity leave. However, it is recommended to discuss your specific situation with your loan servicer.
9. Is deferment available for Parent PLUS loans if I am pursuing a degree?
No, deferment is not typically available for parents pursuing a degree. However, there may be other options such as income-driven repayment plans.
10. Can I defer my Parent PLUS loan if my child is studying abroad?
Yes, if your child is studying abroad and meets the enrollment criteria, you may defer your loan payments during that period.
11. Can I defer my Parent PLUS loan if my child takes a gap year?
No, unless your child is actively enrolled at least half-time in an eligible program, you cannot defer your loan payments during their gap year.
12. Can I defer my Parent PLUS loan if my child is still in high school?
No, deferment is not available while your child is still in high school. Deferment becomes an option once your child is enrolled in an eligible college or university program.
By understanding the deferment process of Parent PLUS loans and being aware of the eligibility criteria, you can successfully postpone your loan payments during times of financial strain or when your child is pursuing higher education. Remember to reach out to your loan servicer for personalized guidance and to obtain accurate information related to your specific circumstances.