Student Loan Deferment

A student loan deferment is a temporary suspension of student loan payments for specific situations, for a specific period of time. Depending on what kind of loans a borrower has, the deferment options may vary.

Stafford and Perkins Loan Deferment

Principal and interest payments may be deferred while the borrower is:

• Attending school at least half-time
• Unemployed (up to three years)
• Studying in an approved graduate fellowship or rehabilitation program for the disabled
• Experiencing economic hardship (up to three years)

Download deferment forms »

Parent Loan for Undergraduate Students (PLUS) Deferment

Principal and interest payments may be deferred while the parent or student is:

• Attending school at least half-time
• Unemployed (up to three years)
• Studying in an approved graduate fellowship or rehabilitation program for the disabled
• Experiencing economic hardship (up to three years)

Alternative Loan Deferment

For an alternative student loan, principal and interest payments may be deferred while the borrower is continuously enrolled up to a maximum of 48 months. Additional deferments are available based on grade level, program of study and specific loan program. Borrowers should read their application and promissory note carefully for details.

Other Payment Relief Options

Forbearance

Forbearance is a similar option for students looking to postpone or lower payments. This allows borrowers to postpone or reduce payments for a certain amount of time due to financial difficulties and is available for students who may not be eligible for deferment. Learn more about student loan forbearance.

Consolidation

Student loan consolidation can help lower monthly payments by extending the term of the loan. Alternative loan borrowers may also be able to lower their interest rate.

Additional Resources for Deferment and Forbearance

• The United States Department of Education defines a deferment as a postponement of a loan without accrued interest.
• If the borrower qualifies for a deferment of student loan debt, then he or she may defer the principal payments in cases of unemployment or dire economic hardship for a total of three years (PDF)
• The United States Department of Education defines forbearance as the temporary postponement of a student loan, because of financial difficulty.
• In order to qualify for a deferment, a student must complete the necessary documentation and submit it to the school or lending institution to await for approval.
• A borrower must contact the lending institution or in-school loan officer for deferment on all PLUS student loans.
• Some possible reasons for forbearance of student loan debt may include poor health, loan exceeds twenty percent of the borrower's total income, natural disasters, national emergencies, or serving in a position that grant loan forgiveness.
• If a borrower cannot obtain a deferment, then he or she should attempt to get a forbearance of student loan debt as a last option.
• A deferment differs from a forbearance of student loans in that it grants a postponement of repayment without having to pay accrued interest.
• Borrowers may be eligible for a deferment if he or she is enrolled in school at least half-time.
• Each borrower must complete a deferment or forbearance form from the United States Department of Education, and provide proof that supports their case.
• Borrowers are responsible for repaying all accrued interest on subsidized and unsubsidized federal Stafford loans while granted forbearance.
• Participants of the Teachers Loan Forgiveness Program may qualify for a forbearance of their federal student loans. (PDF)
• Federal direct loans can be deferred if a member of the military is actively deployed into combat.
• Peace Corps volunteers qualify for a deferment of Perkins loans.
• Borrowers enrolled in an in-school intern or rehabilitation training program may qualify for a deferment of their student loans.