Nowadays education is one of the must have thing for anyone. Every parent wants to provide best education to their kids but at the same time you can see that education is one of those sector which is very badly hit by inflation.
The only option left with you to provide good education to your children is to get an Education loan, as compared with other loans education loan is much cheaper and easy to get. But while taking education loan you might had heard 2 terms :-
- Deferment, and
Both options allow you to push the payment of loan for some time and you get a break by not paying loan installment for a specific time. In simple words you can say that if you take any option from both you don’t have to pay loan for some period of time. You will get some time before you start paying your loan.
Are Both Same?
Well both are almost same as both do same thing for you, they postpone the repayment of education loan for sometime but there is a little difference between these 2. Lets look how Deferment of loan is different from Forbearance of loan:-
In Forbearance, you postpone loan repayment but you have to keep paying interest on the principle amount, its optional to keep paying interest but if you wont pay then that interest will be added to your principle amount and then you have to pay interest on unpaid interest too which will increase your burden a lot.
But in Deferment, you don’t have to pay interest too and your interest wont be added to your principle amount so you don’t have any extra burden on you.
So in simple words you can say that Forbearance allows you break from Principle amount only but deferment allows you a break both from interest and principle amount.
How To Get Deferment Of Loan?
Now I hope you clearly knows the different between 2 and its clear too that Deferment is an good option. But if you wanna get deferment then you must have to meet some criteria as loan provider wont allows you to get this easily.
Criteria varies from loan providers but there are some common things which almost every loan provider might consider, like :-
- Children is in school or college and yet half study is left,
- Kid having single parent,
- Parent is unemployed,
- Families income is low,
- Parent in Army,
- Parent doing social service
If you get qualified for deferment of loan then its good for you as you are going to get break from both interest and principle amount but if you wont get qualified for deferment then you can apply for forbearance and you loan provider will approve it as it wont have any such criteria’s.