Deferments may be granted for reasons such as half-time study, unemployment, economic hardship, graduate fellowships and rehabilitation training. This benefit is generally characteristic of federal and state guaranteed student loans. If you are more than 90 days delinquent, your delinquency will be reported to the national credit bureaus and will negatively affect your credit rating. If you are delinquent for 180 days, you are considered in default. The date the loan check is issued by the lender.
Some lenders issue loan funds electronically.
Factors such as taxable and nontaxable income and the value of family assets are taken into account to determine a family's financial strength. Allowances for maintaining a family and future financial needs are then taken into consideration before determining how much a family should be able to put toward the cost of college. All the federal funds are awarded based on this need analysis formula. Stafford Loans can be either government-subsidized, in which case the government pays any interest while the borrower is attending college, or unsubsidized, in which case interest begins to accrue when the loan is made. Work-study awards are made by colleges, but a portion of the funding comes from the federal government.