Most Common Deferment Options

A deferment is a period of time in which you are not required to make payments on your federal student loans. For borrowers who have taken out their first loan on or after 7/1/93, there are 5 common deferments available.

In-School Deferment – You qualify for this deferment when you return to school on at least a half-time basis at an eligible institution. Half-time enrollment usually equals 6 credit hours. Ask your school if you are considered half-time.

This deferment has no time limit: You continue to qualify as long as you remain enrolled at least half-time. To qualify, you must get your school to certify your enrollment to your lender or servicer. They may automatically do this through the student loan clearinghouse.

Graduate Fellowship Deferment – You qualify for this deferment if you are engaged in a full-time course of study in a graduate fellowship program.

There is no time limit to this deferment: The deferment remains available to you as long as you continue to meet eligibility criteria. Contact your lender to determine if you are eligible.

Unemployment Deferment – You qualify for this deferment if you are unemployed or working less than 30 hours a week, actively seeking full-time employment (30 hours a week or more) in any field, and registered with an employment agency in the United States.

The unemployment deferment is available for a maximum of 36 months. Contact your lender to determine if you are eligible.

Economic Hardship Deferment – This deferment is intended for borrowers experiencing significant economic hardship due to low wages. There are several ways to qualify. Contact your lender to determine if you are eligible.

This deferment is available for up to 36 months. Your lender can assist you with determining your eligibility and documentation requirements.

Rehabilitation Deferment – You may qualify for this deferment if you are receiving or are scheduled to receive, training services from a rehabilitation agency. The agency you work with must be recognized as a rehabilitation services provider, such as a state agency for vocational rehabilitation, a drug or alcohol abuse treatment program, a mental health service, or The Veterans’ Administration (VA).

There is no time limit to this deferment: It is available to you as long as you continue to receive training services as described above. Contact your lender to determine if you are eligible.

Benefits of a Deferment – During a deferment period the government will pay the interest that accrues on your subsidized federal student loans (Stafford subsidized, Perkins, Subsidized portion of your Consolidation).

Drawbacks of a Deferment – During a deferment period interest accrues on your unsubsidized federal student loans and will be capitalized (added to the principal balance) at the end of your deferment. (Stafford unsubsidized, PLUS loans, Unsubsidized portion of your Consolidation.)

For additional details or to determine if you qualify for a federal deferment, you must contact your lender or loan servicer.