Deferments are temporary postponement of payments that are allowed on federal student loans. While in deferment, any subsidized loans you have will not accrue interest, but any unsubsidized loans will continue to accrue interest. You may pay this interest during the deferment, but are not required to. Any accrued, unpaid interest that exists when the deferment ends will be added to your principal balance in the form of capitalization.
Deferment eligibility are based on the borrower not the loan. Once you use your allotted deferment time, you cannot receive anymore, even if you didn’t use it on all loans. Generally, consolidation does not reset the deferment clock.
Most deferments require that the borrower submit a completed application. You can obtain this application from your loan holder or here.
Defaulted loans are not eligible for deferments. If the loan is more than 270 days past due, you may only receive a deferment if you qualified for it prior to the 270 day mark and the loan holder receives your completed application prior to the loan transferring to the collection agency or guarantor.
Deferment Eligibility Chart
This chart lists deferments for borrowers with loans made on or after July 1, 1993. If you have older loans, you may be eligible for additional deferments that will be added at a later date. In the meantime, If you do have older loans, email us and we can walk you through what may be available to you.
|Deferment Type||Loan eligibility||Borrower eligibility||Maximum allowed||Application Process|
Borrowers whose first loan was made prior to July 1, 1987 may only receive an in school deferment if they are full time in school
|For Stafford, SLS, Perkins and Graduate PLUS loans, the borrower must be in school at least half time as defined by the school.
For Parent PLUS loans made after July1, 2008, either the parent borrower or the student for whom the loan was taken must be at least half time as defined by the school. Parent Plus loans made before that date are only eligible for this deferment if the parent borrower themselves are in school at least half time.
|No limit||In most cases, the school will update the loan holder automatically. Borrowers may also obtain a form and have it filled out by the school’s registrar’s office|
|Unemployment Deferment||All Loans||The borrower of the loan must be working less than 30 hours per week and actively seeking full time work||For borrowers whose 1st loan was taken prior to July 1, 1993, 24 months. For those whose first loan was taken on or after July 1, 1993, 36 months per borrower.
For all borrowers, the deferment may be taken in increments of six months at a time
|Complete this form and submit it all loan holders|
|Economic Hardship Deferment||All loans||Borrowers whose first loan was taken on or after July 1, 1993
The borrower must be receiving federal or state benefits under a public assistance program OR
The borrowers full time income must not exceed the greater of minimum wage or 150% of the poverty line for the borrowers family size.
|n 12 month increments, for a total of 36 months per borrower||Complete this form and submit it to all federal loan holders.
You may also submit the form to just one loan holder and once processed, notify the others.
|Graduate Fellowship Deferment||All loans||The borrower must have a bachelors degree AND
Must be engaged in full time study in an academic or professional subject that they have been recommend by an institution of higher education.
The program must also meet further criteria that our outlined fully on the form. In short the fellowship must require written reports and other documented progress.
|Unlimited||Complete this form.|
|Rehabilitation Deferment||All loans||For Stafford, SLS, Perkins and Graduate PLUS loans, the borrower must be in the rehabilitation program that requires a substantial commitment such that it would be difficult for them to work full time. In this case full time is defined as working 30 hours per week or more.
For Parent PLUS loans made after July 1, 2008, either the parent borrower or the student for whom the loan was taken must be in the rehabilitation program that requires a substantial commitment such that it would be difficult for them to work full time.
The rehabilitation program must be licensed, approved, or certified by a state responsible for vocational rehabilitation, drug or alcohol abuse treatment, or mental health services. The program can also be one recognized by Veterans Affairs.
|Unlimited as long as the borrower is enrolled and participating in the program||Complete this form.|
|Active Duty Military||All loans||For all loans, including Parent Plus loans, the actual borrower must be the qualifying active duty member.
To qualify, the borrower must:
You may receive this deferment while you qualify and for six months after your qualification period.
|Unlimited||Complete this form.|
|Post Active Duty Student||All loans||The borrower must:
||No more than 13 months, including any post deferment period you received after your active duty military deferment||Complete this form.|