I need to find a lender that would offer me the best options in regards to a private loan DEFERMENT.
I’ll be completing a Post-bacc 2004-2006 (and will be taking out an undergrad private loan in addition to a Stafford). Did anyone here defer their post bac repayment on the private loan portion? Which lenders let you do that? I’m worried that upon finishing my post bac, I’ll have to begin repayment, as many lenders stipulate: "“repayment begins 6 months after graduation”. I’m not worried about the Stafford, just the private loan.
Also, after you finish medical school , can you get a deferment while you are a resident? I don’t think all lenders offer that option for a private loan…
If you did something similar where you took out a private loan for your post-bacc, plse share the lender you used and whether you had a deferment…Thanks.
It is my understanding that even though these are private loans, many of the regulations imposed on the Fed programs must be adhered to as well. For example, I had a few thou in private loans in addition to a $10k “residency transition loan” (can get these just prior to interview season beginning to help cover interview travel costs & moving expenses - the amount offered is dictated by your Fed aid eligibility too) - both categories have the 6 month grace period & multiple deferment & forebearance options. In fact, the lender for the ‘transition’ loan gives a 9-month grace instead of only 6. Besides, even “if” the private lenders are not required to offer these benefits, in the competitive student loan market, to not offer them is tantamount to suicide as no one would choose them over any other private lender if they did not offer these features.
Regarding deferments & forebearance, as a med school graduate, there are several types of each. A deferment means that you are not making payments & the acruing interest in not compounded into the principle balance until the conclusion of the deferement. And, for the portion of the loan that is subsidized Stafford, the Gov’t cont to pick up the tab for the interest. In forebearance, you are not making payments, but your interest has been rolled into the principle & your interest is compounding.
“Compounding” is whether or not your interest balance is involved in the calculation of additional interest. For example, if your loan is not in deferement or when you are in school - another form of deferment, the acruing interest remains in a separate pile from the principle for the purposes of calculating quarterly interest. This mean if you have a $10k loan balance @ 4% annual, then every quarter (3 months) $100 dollars is added to the interest account, which remains separate from the principle. Each quarter that this loan balance is outstanding, another $100 is added to the interest pile. Now, if your loan is compounding, that $100 in interest would be immediately added to the principle meaning that the next quarter’s interest amount is calculated from a $10,100 balance, yielding $101 in interest for the next quarter. Make sense?
Now, back to your original question…there are several types of deferments available to any graduate that include financial hardship, in school & so on. For med school grads, there is also a internship/residency deferement. Now, you are restricted to only 3 years of financial hardship deferment in your lifetime. Once that has been consumed, you can use up the years available in the intern/res category - not certain how many years are allowed here.
Forebearance is also divided into categories, although I am not familiar with those.
Hope all of this info helps…
