Sallie Mae deferred my loan w/o my asking!

[curlytop]

Weird. I got a letter from Sallie Mae saying they had deferred my loan for 5 years. I hadn't asked them to do this. I am taking a few community college classes, so I guess that's why. 5 years though! I guess since its 0% interest during this time I won't complain. :?

Sweet ... The gods are smiling on you! Typically you would have to fill out a bunch of forms.

[paw67]

Awesome for you curly. Be sure to keep that letter in a nice safe place, just in case something gets screwed up. That way you have proof that they were in deferrement if you need it.

paw67

[Peachkiwi]

Weird. I got a letter from Sallie Mae saying they had deferred my loan for 5 years. I hadn't asked them to do this. I am taking a few community college classes, so I guess that's why. 5 years though! I guess since its 0% interest during this time I won't complain. :?

The same thing happened to me with Direct Loans about 2 semester ago, but instead of 5 years my loan was deferred for a year. I thought it was weird also; at the time I automatically assumed that the University had provided Direct Loans the enrollment information. But now I am thinking with interest rates this low, it's probably Sallie Mae or Direct Loans method in generating additional revenue. By automatically deferring these loans, students may then give into the temptation of capitalizing the interests generated (unsubsidized loans) and continue to defer the loans for an undetermined amount of time!

[awolcott]

Working in the student loan bus for a couple of years now what it seems is that your loans are considered on an In School Deferment. This is subject to change and anytime you drop below half time in school it is the Dept of Educations regulation that the loans begin repayment at that time.
As far as 0% interest that is only on the Subsidized portion of your loans and the rate is (2.82% in school and deferemnt) and 3.42 out of school.l Your lender Sallie Mae is billing the Department of Education for the interest on your sub loans. So just becarfull about that.
If you have any questions about student loans, their terms, or credit reporting (including how to get them off) just let me know and I can help a great deal.


-Adam