Student Loan Deferment. Explain when you might use a deferment on student loans. What are the disadvantages of defering student loans?

You might use a deferment on a student loan if: (Select the best answer below.)

A.

you need to purcahse a car to get to your job.

B.

you have a temporary financial hardship such as job loss.

C.

you purchase a home and cannot afford the student loan payments.

D.

you have a temporary financial hardship such as gambling away all your savings.

A disadvantage of defering student loans is:(Select the best answer below.)

A.

in most cases interest continues to accrue during the deferment period so the total value owed increases. Long periods of deferment can cause you to need to declare bankruptcy.

B.

in most cases interest continues to accrue during the deferment period so the total value owed increases. Long periods of deferment can substantially increase the amount owed.

C.

in most cases interest continues to accrue during the deferment period, but at a lower interest rate. Long periods of deferment can substantially decrease the amount owed.

D.

in most cases interest does not continue to accrue during the deferment period so the total value owed decreases. Long periods of deferment can substantially decrease the amount owed.