What is a deferment and how do I apply?
A deferment entitles you to postpone monthly payments on your student loan. Deferments are important because they give you flexibility – and may save you money! For example, on Federal Subsidized Stafford Loans, the federal government pays your interest during a deferment. And the time your loan is in deferment is not counted in the maximum period you have to pay the loan back. So it is worthwhile to protect your deferment rights, just as you would be careful with your grace period. (Your grace period is the time after you withdraw, graduate, or drop below half-time until you have to start making payments on your loan. A Federal Stafford Loan has a six-month grace period.) You can apply for a deferment for a number of reasons, such as: • Education (continuing your education) • Mental or Physical Rehabilitation Program • Graduate Fellowship Program • Unemployment • Economic Hardship • Military or National Guard Service To obtain a deferment timely, try to submit your request before the
A deferment entitles you to postpone monthly payments on your student loan. Deferments are important because they give you flexibility – and save you money! For example, on Federal Subsidized Stafford Loans, the federal government pays your interest during a deferment. And the time your loan is in deferment is not counted in the maximum period you have to pay the loan back. So it is worthwhile to protect your deferment rights, just as you would be careful with your grace period. (Your Grace Period is the time after you leave school, withdraw, graduate or drop below half-time until you have to start making payments on your loan. A Federal Stafford Loan has a six month grace period.
A deferment entitles you to postpone monthly payments on your student loan. Deferments are important because they give you flexibility and save you money. For example, on subsidized Federal Stafford Loans, the federal government pays your interest during a deferment, and deferment is not counted in your repayment period. You can qualify for a deferment for a number of reasons, such as: • Education (continuing your education) • Mental or Physical Rehabilitation Program • Graduate Fellowship Program • Unemployment • Economic hardship • Military or National Guard Service To obtain a deferment in a timely manner, submit your request before the date you want the deferment to start. A deferment may be renewed, but some deferment types have a maximum cumulative time limit. For example, a deferment for economic hardship cannot exceed a cumulative maximum of three years.
Related Questions
- How can I determine if I am entitled to a deferment or cancellation on my Federal Perkins, Health Profession Student Loan or University Long Term Loan and, if so, how may I file for one?
- Are there any companies that offer small business loans with a deferment period?
- Who is eligible for Summer Deferment Pay?
