Defer or Default?
February 4, 2011 2:19 PM Subscribe
I have $33,000 in subsidized federal student loan debt. This past year my loans have been in deferment, which means that accumulating interest has been capitalized. I earned approximately $6000 last year. My annual income has never been above $18k. Between the job market and child care for my kids, the future doesn't look much better. What happens if I default on my loans? Is there a better option for me than deferment?