Loan Repayment Help
How do I request a deferment?
Most deferments are not automatic, and you will likely need to submit a request to your loan servicer, the organization that handles your loan account. If you are enrolled in school at least half-time and you would like to request an in-school deferment, you'll need to contact your school's financial aid office as well as your loan servicer. Your deferment request should be submitted to the organization to which you make your loan payments. Direct Loans and FFEL Program loans: contact your loan servicer. Perkins Loans: contact the school you were attending when you received the loan.
Education Related Deferment
You are eligible if you are engaged in a graduate fellowship program, rehabilitation training, internship or residency, or teaching in a teacher shortage area.
In-School Deferment and Parent PLUS Borrower Deferment
You are eligible if you are enrolled at an eligible school at least half time, or if you are a parent with a Parent PLUS Loan who needs to defer repayment while your student is enrolled in school at least half time.
Economic Hardship Deferment
You may be eligible for an Economic Hardship Deferment for up to three years.
What is deferment?
A deferment is a period during which repayment of the principal and interest of your loan is temporarily delayed.
Deferment
Deferment is a period where you postpone making payments on your loan. Interest doesn't accrue on subsidized federal loans.
What happens to my loan during deferment?
During a deferment, you do not need to make payments. What's more, depending on the type of loan you have, the federal government may pay the interest on your loan during a period of deferment. The government may pay the interest on your 1. Federal Perkins Loan, 2. Direct Subsidized Loan, and/or 3. Subsidized Federal Stafford Loan. The government does not pay the interest on your unsubsidized loans (or on any PLUS loans). You are responsible for paying the interest that accrues (accumulates) during the deferment period, but your payment is not due during the deferment period. If you don't pay the interest on your loan during deferment, it may be capitalized (added to your principal balance), and the amount you pay in the future will be higher.
Discretionary Forbearance
For discretionary forbearances, your lender decides whether to grant forbearance or not. You can request a discretionary forbearance for the following reasons: 1. Financial hardship 2. Illness
Forbearance
Forbearance is a period during which your monthly loan payments are temporarily suspended or reduced. Payments on your loan principal are postponed, but interest will accrue during the forbearance period. Forbearance is intended to help you out in times of temporary need. Note that the use of forbearance may cause the loss of borrower benefits - such as repayment incentives that can lower your interest rate - for certain loans. Cosigner release for private loans includes an on-time payment requirement. Forbearance may delay eligibility.
What is forbearance?
If you can't make your scheduled loan payments, but don't qualify for a deferment, your loan servicer may be able to grant you a forbearance. With forbearance, you may be able to stop making payments or reduce your monthly payment for up to 12 months. Interest will continue to accrue on your subsidized and unsubsidized loans (including all PLUS loans). There are two types of forbearances: 1. Discretionary 2. Mandatory
Deferment and Forbearance
If you have a federal loan and think you may have a problem making on-time payments due to a temporary financial difficulty, you may be eligible for a period of deferment or forbearance. Note that these options don't release you from your loan, just from making scheduled payments for a brief time. Remember, interest may continue to accrue. A deferment or forbearance allows you to temporarily postpone making your federal student loan payments or to temporarily reduce the amount you pay. Under certain circumstances, you can receive a deferment or forbearance that allows you to temporarily postpone or reduce your federal student loan payments. Postponing or reducing your payments may help you avoid default. You'll need to work with your loan servicer to apply for deferment or forbearance; and be sure to keep making payments on your loan until the deferment or forbearance is in place.
Trouble Making Payments?
If you're having temporary issues making your student loan payments due to unemployment or economic difficulties, be sure to let us know as soon as possible to avoid becoming delinquent.
Unemployment Deferment
If you're unemployed (or working less than 30 hours per week) and seeking full-time employment, you may be eligible for an Unemployment Deferment for up to three years. If you're working 30+ hours per week but you aren't able to afford your monthly payment, you may consider a graduated or income-driven repayment plan.
