Deferments
A deferment is a temporary postponement of payments on your student loan if you meet specific requirements. Deferment eligibility is often contingent on your specific situation, when you received your first outstanding loan, and what type of loan you have.
Common deferments include:
Additional deferments are available for various circumstances. Use the Deferment Navigator to find a deferment that better relates to your current situation.
If you need assistance choosing the right deferment, call our Default Prevention Counselors at 1-877-293-8946 or email us.
NOTE: If you qualify for a deferment, the Department of Education will pay the interest that accrues on your subsidized Stafford loans while you are on a deferment. If you have any unsubsidized Stafford loans, you are responsible for the interest accruing on those.
You may choose to pay the interest while in deferment or let it accrue and be capitalized (added to your principal balance) at the end of the deferment period. Capitalized interest increases your balance and can lead to a higher monthly payment as well as more interest paid over the life of the loan.
In-School Deferment
As long as you are attending an accredited school at least half time you qualify for an in-school deferment on your federal student loans. The only exception would be for borrowers who have an outstanding loan received prior to July 1, 1987. These borrowers must be attending full-time to qualify for an in-school deferment.
There is no limit on length or amount of In-school deferment you can be granted.
To receive an in-school deferment, call your lender(s). In most cases they can review an electronic database to confirm your in-school status and grant the deferment over the phone. In rare cases you may have to complete an In-School Deferment form.
Do not assume your lender knows you are in school. If your lender is sending you monthly billing statements, that is typically a good sign that they do not have you in a deferment or in-school status. Contact them immediately to have your account updated.
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Economic Hardship Deferment (new requirements effective July 1, 2009)
An economic hardship deferment is available for borrowers whose outstanding loans were all received on or after July 1, 1993. To qualify for an economic hardship deferment you must meet one of the following requirements:
Economic hardship deferments are granted for periods of 1-year at a time for a maximum of 3-years.
To receive an economic hardship deferment you must complete an Economic Hardship Deferment form and submit it to your lender(s) with appropriate documentation. Failure to return the appropriate documentation will result in your lender denying the deferment request.
NOTE: There were additional economic hardship qualifying options for borrowers prior to July 1, 2009 but the options were removed in recent legislation. If you believe you may have qualified for an economic hardship deferment prior to July 1, 2009 contact one of our Default Prevention Counselors toll free at 1-877-293-8946 to discuss the additional options.
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Education Related Deferment
Depending on when your outstanding loans were received, you may qualify to have your student loan payments postponed due to your involvement in education related programs.
All borrowers may apply for a deferment if they are engaged in:
Borrowers with loans received prior to 07/01/93 may qualify if they are:
Borrowers who qualify for an Internship/Residency related deferment may receive a maximum of 2-years of deferment time.
Borrowers who qualify for a Teacher Shortage Area deferment have a maximum of 3-years of this deferment available.
There are no limits on the Graduate Fellowship and Rehabilitation Training program deferments
Graduate Fellowship Qualifications:
The program must:
You must:
Rehabilitation Training Qualifications:
The program must:
You must:
Internship/Residency Qualifications:
The program must:
In addition, the program must either:
NOTE: For the latter of these two options, you must provide a separate statement from the appropriate state licensing agency certifying this requirement.
Teacher Shortage Qualification:
Use the Department of Education website to help identify shortage.
To apply for a deferment due to any of these four reasons, you must complete an Education Related Deferment Request form and submit it to your lender(s).
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Military Deferment
You may qualify for a deferment based on your military service if you serve either:
• On active duty during a war or other military operation, or a national emergency; or
• On qualifying National Guard duty during a war or other military operation, or a national emergency.
For the purposes of this deferment:
NOTE: Not all active duty military personnel qualify for this deferment. Your service must be in connection with a war, military operation, or national emergency as described above and if you are a full-time active member of an Armed Force (Army, Navy, Air Force, Marines) you must be assigned to a duty station other than your home base.
To apply for a Military deferment you or your representative (does not have to be a legally appointed representative, can be any family member or friend), must request the deferment (verbally or in writing) and provide your lender with documentation of your active duty status. The documentation should include either:
Military deferments are granted for the length of your qualifying service and are not subject to any life time limit restrictions.
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Unemployment Deferment
Are you working less than 30 hours per week? Are you looking for full-time employment? Are you registered with a job service or receiving unemployment benefits? If you can answer yes to all of these questions you qualify for an Unemployment deferment.
Unemployment deferments are typically granted in 6-month increments. Maximum unemployment deferment time allowed:
To receive an unemployment deferment you must complete an Unemployment Deferment form and submit it to your lender(s). Some lenders may allow you to submit these forms electronically, check with your lender(s) for this option.
Common deferments include:
Additional deferments are available for various circumstances. Use the Deferment Navigator to find a deferment that better relates to your current situation.
If you need assistance choosing the right deferment, call our Default Prevention Counselors at 1-877-293-8946 or email us.
NOTE: If you qualify for a deferment, the Department of Education will pay the interest that accrues on your subsidized Stafford loans while you are on a deferment. If you have any unsubsidized Stafford loans, you are responsible for the interest accruing on those.
You may choose to pay the interest while in deferment or let it accrue and be capitalized (added to your principal balance) at the end of the deferment period. Capitalized interest increases your balance and can lead to a higher monthly payment as well as more interest paid over the life of the loan.
In-School Deferment
As long as you are attending an accredited school at least half time you qualify for an in-school deferment on your federal student loans. The only exception would be for borrowers who have an outstanding loan received prior to July 1, 1987. These borrowers must be attending full-time to qualify for an in-school deferment.
There is no limit on length or amount of In-school deferment you can be granted.
To receive an in-school deferment, call your lender(s). In most cases they can review an electronic database to confirm your in-school status and grant the deferment over the phone. In rare cases you may have to complete an In-School Deferment form.
Do not assume your lender knows you are in school. If your lender is sending you monthly billing statements, that is typically a good sign that they do not have you in a deferment or in-school status. Contact them immediately to have your account updated.
Back to top
Economic Hardship Deferment (new requirements effective July 1, 2009)
An economic hardship deferment is available for borrowers whose outstanding loans were all received on or after July 1, 1993. To qualify for an economic hardship deferment you must meet one of the following requirements:
- You have been granted an economic hardship deferment under the FDLP for the same time period.
- You are receiving or received federal or state public assistance such as TANF, SSI, food stamps, or state general public assistance.
- You are serving as a Peace Corp volunteer.
- You work full-time and your monthly income does not exceed the larger of the Federal Minimum Wage Rate ($7.25/hour) or 150% of the poverty guideline for your family size and state.
Economic hardship deferments are granted for periods of 1-year at a time for a maximum of 3-years.
To receive an economic hardship deferment you must complete an Economic Hardship Deferment form and submit it to your lender(s) with appropriate documentation. Failure to return the appropriate documentation will result in your lender denying the deferment request.
NOTE: There were additional economic hardship qualifying options for borrowers prior to July 1, 2009 but the options were removed in recent legislation. If you believe you may have qualified for an economic hardship deferment prior to July 1, 2009 contact one of our Default Prevention Counselors toll free at 1-877-293-8946 to discuss the additional options.
Back to top
Education Related Deferment
Depending on when your outstanding loans were received, you may qualify to have your student loan payments postponed due to your involvement in education related programs.
All borrowers may apply for a deferment if they are engaged in:
- A full-time course of study in a Graduate Fellowship program, or
- A full-time Rehabilitation Training program.
Borrowers with loans received prior to 07/01/93 may qualify if they are:
- Engaged in an Internship/Residency program, or
- Teaching in a designated Teacher Shortage Area.
Borrowers who qualify for an Internship/Residency related deferment may receive a maximum of 2-years of deferment time.
Borrowers who qualify for a Teacher Shortage Area deferment have a maximum of 3-years of this deferment available.
There are no limits on the Graduate Fellowship and Rehabilitation Training program deferments
Graduate Fellowship Qualifications:
The program must:
- Provide sufficient financial support to allow for full-time study for a period of at least 6-months;
- Require, prior to the awarding of financial support, a written statement from each applicant which explains the applicant’s objectives;
- Require a graduate fellow to submit periodic reports, projects, or other evidence of the graduate fellow’s progress; and
- In the case of a course of study at a foreign university, accept the course of study for completion of the fellowship program.
You must:
- Hold at least a Bachelor’s Degree conferred by an institution of higher education, and
- Have been accepted or recommended by an institution of higher education for acceptance into the graduate fellowship program on a full-time basis.
Rehabilitation Training Qualifications:
The program must:
- Be licensed, approved, certified or recognized as providing rehabilitation training to disabled individuals by the Department of Veterans Affairs or a state agency responsible for vocational rehabilitation, drug abuse treatment, mental health services, or alcohol abuse treatment programs;
- Provide services under a written individualized plan that specifies the date the services are expected to end; and
- Be structured in a way that requires a substantial commitment by you too your rehabilitation. (Substantial commitment means a commitment of time and effort that would normally prevent a person from being employed 30 or more hours per week in a position expected to last at least three months.)
You must:
- Be receiving, or scheduled to receive, these rehabilitation services.
Internship/Residency Qualifications:
The program must:
- Be a supervised training program, and
- Require that you hold at least a Bachelor’s Degree before acceptance into the program.
In addition, the program must either:
- Lead to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training; or
- Be required before I may be certified for professional practice or service.
NOTE: For the latter of these two options, you must provide a separate statement from the appropriate state licensing agency certifying this requirement.
Teacher Shortage Qualification:
- You must teach full-time in a public or non-profit private elementary or secondary schools in a geographic region or specific grade level, academic, instructional, subject matter or discipline classification that has been designated as a shortage area by the U.S. Department of Education.
Use the Department of Education website to help identify shortage.
To apply for a deferment due to any of these four reasons, you must complete an Education Related Deferment Request form and submit it to your lender(s).
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Military Deferment
You may qualify for a deferment based on your military service if you serve either:
• On active duty during a war or other military operation, or a national emergency; or
• On qualifying National Guard duty during a war or other military operation, or a national emergency.
For the purposes of this deferment:
- Active duty means full-time duty in the active military not including training or attendance at a service school.
- A military operation is any operation that involves military actions, operations, or hostilities against an enemy of the U.S. or opposing military force; or results in the call or order to (or retention on) active duty under any provision of law during a war or during a national emergency declared by the president or Congress.
- National emergency refers to emergencies declared by the president as a result of terrorist attacks.
- Qualifying National Guard duty is full-time active National Guard duty authorized by the president or the secretary of defense. The service must last more than 30 consecutive days and be in connection with a war or other military operation, or a national emergency as declared by the president and supported by federal funds.
NOTE: Not all active duty military personnel qualify for this deferment. Your service must be in connection with a war, military operation, or national emergency as described above and if you are a full-time active member of an Armed Force (Army, Navy, Air Force, Marines) you must be assigned to a duty station other than your home base.
To apply for a Military deferment you or your representative (does not have to be a legally appointed representative, can be any family member or friend), must request the deferment (verbally or in writing) and provide your lender with documentation of your active duty status. The documentation should include either:
- A copy of your military orders; or
- A written statement from your commanding or personnel officer that your service meets the eligibility requirements as described above.
Military deferments are granted for the length of your qualifying service and are not subject to any life time limit restrictions.
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Unemployment Deferment
Are you working less than 30 hours per week? Are you looking for full-time employment? Are you registered with a job service or receiving unemployment benefits? If you can answer yes to all of these questions you qualify for an Unemployment deferment.
Unemployment deferments are typically granted in 6-month increments. Maximum unemployment deferment time allowed:
- 2 years for borrowers with outstanding loans received prior to July 1, 1993
- 3 years for borrower with all of their outstanding loans received after July 1, 1993
To receive an unemployment deferment you must complete an Unemployment Deferment form and submit it to your lender(s). Some lenders may allow you to submit these forms electronically, check with your lender(s) for this option.
