Loan Rangers
I want to go freelance, but I’m not sure I can repay my student loans. Can I get a deferment?
Answer:
You’re experiencing a confusion common to many recent college graduates: You think your student loan is owned by your college. It’s not. Your loan is now at a bank. Banks are businesses. Businesses don’t give not interested in floating you while you pursue your dream. They do, however, want said, with the average student now owing $11,000 upon graduation, and the default rates on student loans hovering near 12 percent, banks have become more flexible in their repayment plans. Call your lender and ask about plans for reducing your monthly payments. At Sallie Mae (the federally established company that holds one out of every three student loans), for instance, you can lower your monthly payments by paying interest only—no principal—for the first two to four years of the loan.
You didn’t ask, but if you had I’d say don’t do it. Freelancing is something you should do after you’ve worked a few years, built up your contacts and amassed a decent financial cushion to last you through the lean times. If you can’t afford to meet a commitment like a loan, you can’t afford to freelance. Prolonging the debt will only make it bigger, and ruining your credit will cost you much more trouble and money in the long run.
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