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C Wants to Defer Student Loans Without Hurting the Credit Report


“Dear Steve,

I paid my way through college and fortunately could afford to take out only subsidized Stafford loans amounting to $10,000. After graduating I planned to find a full time job but have only found part time temporary jobs. I clustered these jobs over the last eight months and have been able to pay down my debt to about $7,500. Unfortunately my temporary jobs have run out and I am currently applying for work. I received my final pay check one week ago and have a dozen applications pending. The job hunt and hiring process can be lengthy and I don’t want to spend money on my monthly loans payments.

If I defer my loans until I get another job how will that effect my credit score?


Dear C,

Do you know my good friends A and B?

See my answer to Pam Asks “Does a Deferred Student Loan Lower Your Credit Score” for additional information.

Bottom line, a deferment still lets interest build up but does not put the loan into default. So a deferment would be better than not in lean times.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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