For college students, finding ways to afford their education is as challenging as getting into a good school. Most students receive student loans and do not fully comprehend their repayment schedules.

An interest deferred student loan is only one kind of loan available. It is conceivable to find a deferred student loan lender, but like all loans, each bears its own unique set of dangers and benefits. Each lending institution features its own set of rules for potential borrowers, and the search for affordable student loans may be your first serious educational quiz!

One deferred student loan lender, the Stafford Loan, requires no payments until after graduation, with an extra six-month grace period. Whatever amount borrowed will have to be repaid only after graduation, or if the student goes below part-time status or drops out of school. As long as the student remains enrolled at a qualified educational establishment, the loan’s interest is deferred.

Stafford Loans have 2 options, 1 in which the loan is given by the school and the other when a private lending institution grants the loan, which is assured by the federal government. In both situations, loan repayment requirements remain identical.

A Perkins loan, released by the school, is backed by funds made available by the government and the amount of funding is limited and reliant on financial constraints.

Other Loan Types

Additional non-deferred student loans available for students and their parents, such as the Federal Direct Parent Loan for Undergraduate Students, will grant a loan based on the amount charged by the school for classes and additional expenses less any scholarships or other aid received by the student. In this loan, repayment is slated begin within 60 days of the full amount being paid to the school.

The Federal Direct Graduate PLUS Loan offers a similar plan, complete with the same repayment demands.

For many unsubsidized loan agreements, money borrowed under a deferred student loan agreement will not entail repayment until after graduation. But, with many of these loans, interest will accrue from the date of the loan. Students are advised to make interest payments through the life of the loan or the interest amount will be added to the principal.

Most of these loans are awarded to students not qualifying for need-based assistance and they are considered unsecured loans. For many students that need a loan to make attending college plausible, there are deferred loans which delay repayment until after graduation. There are even some occupations that will let repayment to be deferred for up to 36 months. Make sure you know if you are dealing with a deferred student loan lender, and if you have signed up for an interest deferred student loan, make extra sure you understand the terms you agreed to and the repayment schedules. Always query the financial aid office at your school and make sure you complete your application, submitting all the necessary forms requested by the lenders. Prior to applying, be sure you have all the facts to make an enlightened decision, so that you don’t equate your higher education with higher interest rates!