student loan deferment

hi this is jeff harman debt advisor with consumerdebt counselors i’m here in the winter park florida office. today i’m going to talkabout forbearances and student loans. a lot of people get deferments and forbearancesmixed up. they think, “well it’s just a way for me not to have to pay on my studentloans right now.” we want to make sure that we clear up thatconfusion. while both a deferment and a forbearance do allow you to postpone your payments, thebiggest differences is with forbearances generally speaking the interest is going to continueto accrue while you’re not making the payments. now, this can add up to a lot of money ifyou have thirty, forty, fifty thousand dollars in student loan debt and you’re going one,two, three years without making a student

loan payments while the interest is buildingup, when it does come time to making payments your debt’s going to look a lot differentthan when you started postponements. just like with deferments, we caution peoplenot to abuse your forbearances. again, many of your forbearances do have a shelf lifemeaning you can only use them up to so many times in the life of your loan. so if youabuse them or max them out at the beginning when you first get out of college and youfirst having to start making payments on your loans, you may not have them to use lateron down the road when you may have some more serious situations in your life when you couldhave used those. so as with any type of postponement in yourstudent loan debt we encourage anybody to

seek out options to seek out professionaladvice to see if there are other options that you could possibly take advantage of. you could hold onto those forbearances whilestill helping out your financial position. again, my name is jeff harman here in thewinter park office.