An excellent short term way to rid ones self of the financial burden that current student loan payments put on a graduate is the use of student loan consolidation. In addition to Student loan consolidation there are two programs designed to provide student loan debt relief to a recent graduate, they are deferent and forbearance.

Under certain circumstances, you can receive periods of deferment or forbearance that allow you to postpone loan repayment. These periods don't count toward the length of time you have to repay your loan. You can't get a deferment or forbearance for a loan in default.

A deferment is a period of time during which no payments are required and interest does not accrue (accumulate), unless you have an unsubsidized Stafford Loan. In that case, you must pay the interest. Plus loans are eligible for deferment as long they are not in default, however, because Plus loans are unsubsidized your parents or legal guardian will be charged interest during this period of deferment. If they don't pay the interest it will be added to the principle amount of the loan. It is important to note, that you must continue making payments on your student loans until you have notified that your student loan deferment has been approved. If you don't make payments, and your request for deferent is not granted, your loans will become delinquent and you may default on your student loans.

If you temporarily can't meet your repayment schedule but you're not eligible for a deferment, your lender might grant you forbearance for a limited and specific period of time. Forbearance occurs when your lender or loan-servicing agency agrees (in writing) to either temporarily reduce or postpone your student loan payments. Interest continues to accrue (accumulate), however, and you are responsible for paying it, no matter what kind of loan you have.

Generally, the bank can grant forbearance for periods of up to twelve months at a time, for a maximum of three years total. Students will have to provide documentation to the bank to show why they should be granted forbearance. It is harder for graduates to receive forbearance then it is to be granted deferment. However, there are circumstances when the bank must grant forbearance, they are; when a graduate is in medical residency, when the student loan payments are more then 20% of the graduates monthly income, and if the graduate goes in to the military.

Though average historical levels of deferment are at 12.2% and 12.9% for forbearance since 1999, the most recent data shows second quarter 2006 levels higher for deferment up to 13.5%, while forbearance has treaded lower to 11.3%. The rise in deferments is due to lower interest rates that are provided through student loan consolidation and have encouraged borrowers to lock in better rates by consolidating their Stafford and PLUS loans into a fixed rate consolidation loan. Furthermore, the higher interest rates that congress imposed back in February of 2006 has made it harder for recent graduates to make ends meant with out taking advantage of deferment or forbearance. The drop in forbearance levels can be attributed to the state of the graduate in the favorable economic climate as well as the ability to consolidate thus creating some student debt relief, that and the fact that interest continues to accrue while in forbearance.