Does anyone know how deferring a federal, subsidized loan will affect my credit? My loan is small but I am unemployed and unless something changes, I won't have the money to pay my loan when it comes due in a few months. Will deferring the loan hurt my credit?

in the process of finding loans for a doctorate in a foreign country-wish me luck! what i will be worth makes up for the extreme cost although you have to wonder where all the money in compounded interest goes-certainly to make a ceo sleep better at night I hope

I hope most people reading this article will take the negative commentary below (mrlee, William, etc) with just a modicum of understanding... ANY loan is a debt until you have gotten some return on that investment. And the rewards of using "someone else's money” now for future gains usually depends on the ambition, character, and general moxie of the individual. A college degree – statistically -- ensures your chances of better jobs, more $$$, more opportunities, etc. but only if you put it to use (check http://www.bls.gov/emp/emptab7.htm).

Funny things: people have almost no hesitation to take out a high-interest loan for a car (which immediately depreciates in value, or can be totaled in one day); or a house (which can go up or down in value, and be destroyed in one day); or a small business (which can succeed or fail, or be destroyed in one day); and so on. We'll often max out our high-interest rate credit cards on usually material "stuff" or services that are temporary at best. Not that CCARDs are all bad either… essentially getting a loan to buy things now that do serve a need (food, clothing, haircut, car repairs, etc) but still generally do not provide a return on the $$$ spent.

Yet how much complaining we read and hear about taking a loan of non-income, non-credit based federal monetary assistance toward an in-demand (nowadays more than ever!) college education which can only increase in value, increase YOUR future earnings and return on investment, and never be taken away... AND in most cases, set a good example for future generations to follow suit.

Clark Howard fans are typically smart, knowledgeable and cautious. Please, readers, don’t be afraid to invest in yourself; most student loan horror stories are self-created by the student’s failure to adhere to strict regulatory policies and guidelines. Plus, any reputable college employs finance advisors who are there to help guide you through the confusing maze of information that come with any monetary transactions. Be smart and be prudent, but don’t be fearful nor misinformed.

"An investment in knowledge always pays the best interest" -- Ben Franklin

when people steal and cheat in the corporate world, they got a pat on the hand. Whereas, if you trying to go to college with good intentions, you will punished for life. It's better to steal and cheat than borrow to go to college.

I have a student loan and after two strokes that made it impossible to work I put in for a hardship discharge of my loan. It was turned down because the neurologist put a comment on the form that said that if future medical science discovers ways to reverse the brain damage I may be able to work in the future. After getting a new neurologist and resubmitting I was turned down because they lost my file and, thus, the doctor's statements were out of the required time span - this is even though the student loan people had the form all along. I have resubmitted and, even though they signed for the submissions, they still, after 2+ years, have not given me an answer or responded to my inquiries. I have exhausted all forbearances I could get. Now I find out that they sold my contract to a new company and I have to start the process all over again because the new company refuses to view the request sent to the old holder - th new company has different standards to meet. I will probably be dead before they approve my request. Meanwhile I live on a very fixed income and cannot pay the monthy loan charge. I have to file seperate from my wife because the IRS will ceize the return if my SSN is on a joint return.

I agree with Howard about how screwed up the student loan system is on record keeping and customer service.

I would agree with Buzz that its gotten to the point where in a lot of cases the cost of the masters degree is not worth is when you compare to the salary you can expect to receive in the field, compared to the debt you tend to incur while earining the degree. Even just for a bachelors degree many graduates come out of school with at least 50k in loans yet end up with a job that pays 30k per year. And the irony is that the place would have not hired the person without the degree. Its a vicious cycle.

When people become unemployed, they frequently will go back to school to further their education. Again and again I have seen people get master's degrees and never do get the employment they had hoped for. More and more these advanced degrees seem to be bad investments. Americans have to be the most over-educated people in the world. I'd like to see someone do a study of people with Master's degrees, to see if and when they can be justified. But I don't want to the study to be done by an educational instituion. They have an agenda and the results could not be believed.