Student Hardship Loan
Can you settle on a Student Loan? Should I pay on the old loan first or the new one?
I have a previous student loan that is in deferment for hardship. I enrolled in College again and had to take out a second student loan which I was not expecting to do. I also have a full Grant. I want to put the grant towards one of my loans.
If you're returning to school and your existing loan is on Economic Hardship Deferment, contact your loan servicer - it's probably Federal and can be placed on In School Deferment (Fed loans: SLS, Perkins, Grad Plus, Subsidized Stafford & Unsubsidized Stafford). If it is actually private, then pay towards it.
If both of your loans are Federal, are either Subsidized? Subsidized loans don't accrue interest during In School, Grace, or Deferment. If either of your loans in Unsubsidized, pay towards that one.
If both of your loans are the same type, pay towards whichever has the higher interest rate.
Keep in mind that if your most recent loan was disbursed within the past 180 days, your payment may go directly towards its principal unless otherwise specified.
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