Can consolidating student loans help your credit
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For example, under the Public Service Loan Forgiveness Program (PSLFP), your Direct Loan balance may be eligible for forgiveness after 120 payments if you’ve worked in the public sector that entire time.
Similarly, the Teacher Loan Forgiveness Program is available for teachers who work in schools that serve low-income families full-time for five consecutive years.
You might wonder, “how is forbearance different from deferment?
Sometimes you simply can’t pay and have not been granted a period of deferment or forbearance.
And if you do qualify, but you’re at the high end of the spectrum, your slightly lowered payments may come at a through the refinancing process won’t make sense for every borrower, but it provides great benefits for some.
Now that you know it’s an option and you understand how it works, you can better assess whether it’s right for you.
In many cases, private lenders have similar rules regarding deferment eligibility.
If you are afraid of missing payments on a private loan, your first step should be to inquire about deferment.