Millions of people in the United States are burdened with student loan debt. For many, that debt is an obstacle to getting ahead in their careers and lives. But there are ways to get out from under that debt, and one of the most effective strategies is to apply for a student loan repayment extension. If you’re struggling to make your monthly payments and want more time to pay off your loans, read on for information on how to apply for a student loan repayment extension. You may be surprised at just how much time you can save by applying for a repayment extension.
What is an extension of my student loan repayment?
An extension of student loan repayment is a modification of your loan repayment schedule that allows you to delay or extend your monthly payments. An extension can be a valuable tool if you need more time to pay off your debt, or if you have difficulty making required payments on time.
To obtain an extension, you’ll need to submit a request with your servicer. Your servicer will work with you to determine whether an extension is possible and appropriate based on your individual situation. You may be able to extend your repayment period for up to five years, depending on the type of loan you have and the terms of your original student loan agreement.
There are a few things you’ll need to consider when requesting an extension:
-Your income and assets: An extension may not be available if your income or assets have changed significantly since you first enrolled in repayment. Additionally, an extended repayment period could increase the amount you owe overall due to interest charges and fees.
-Your current financial situation: If you’re struggling financially, an extended repayment period might not be the best solution for you. An extension could also add significant costs (like interest) that might make repaying your debt more difficult.
-The impact of deferment or forbearance: An extension often requires that you stop deferring or forbearing on your loans, so make sure that’s something that’s still feasible for you before submitting a request. Stopping deferment or forbearance could have serious consequences like
How do I apply for an extension of my student loan repayment?
If you have been approved for an extension of your student loan repayment, you will need to submit an application online at www.studentloan.gov or by calling 1-800-4-FED-AID (1-800-433-3243). You will need to provide your name, loan servicer, loan type, the current date and your estimated date of graduation. If you are requesting a forbearance on your student loan payments, you will also need to provide information about your situation and the amount of time you anticipate using the forbearance.
You will be notified whether your application has been approved or not within 30 days. If it is approved, the new repayment plan will begin on the estimated date of graduation. If it is denied, please contact the loan servicer for more information about why the extension was not approved.
What are the terms and conditions of an extension of my student loan repayment?
If you are considering an extension of your student loan repayment, there are some important terms and conditions to be aware of. An extension can lengthen the time it takes to repay your student loan, but it also comes with additional costs.
Before you decide to take out an extension, make sure you understand the following:
-The interest rates on your student loans will continue to compound while your loan is extended.
-Extending your repayment period may increase the total amount you will have to repay.
-An extension may cause your student loan balance to increase.
-There are a limited number of extensions available each year.
-You must apply for an extension before you reach 62 years old or after 30 years of continuous federal income tax filing if you are still using subsidized Stafford loans.
If you decide to apply for an extended repayment plan, be prepared to provide documentation that shows why you need the extra time and money to pay back your debt. There are a few things that could disqualify you from receiving an extended repayment plan, including if: You have reached maxed out on all available deferment and forbearance options You have failed to make any required payments during the current term of your loan (even if those payments were made in error) Your financial situation has changed significantly since you borrowed money from the government In order for us to evaluate whether or not extending repayment would be beneficial for you, we will require copies of your most
What are the benefits of an extension of my student loan repayment?
There are many benefits to extending your student loan repayment period. Here are a few:
1) You’ll Save Money on Interest: One of the main reasons to extend your repayment period is to save money on interest. If you can continue making monthly payments for an extra few years, you’ll end up paying less in total than if you had to pay all of your loans off right away.
2) You’ll Reduce Your Chance of Defaulting: If you haven’t already, extending your repayment period may also help you reduce your chance of defaulting on your loans. Defaulting can have serious consequences, including losing your federal student loan eligibility, having to pay back more money than you borrowed, and even jail time.
3) It Can Help You Avoid Repaying Too Much Early: If you’re able to extend your repayment period and make regular payments throughout the length of the extension, you may be able to avoid repaying too much early. This can help ensure that you have enough money left over each month to cover other costs associated with being a student—like tuition and books.
Is there a fee associated with an extension of my student loan repayment?
There is no fee associated with an extension of your student loan repayment.
If you are approved for an extension, your loan servicer will send you a notice notifying you of the new repayment date and amount. You will continue to make payments on your original loan amount, plus interest, during the extension period.