What is a Type Z deferment? Can a Type Z deferment be processed while the borrower is in a grace period?
A Type Z deferment removes principal and interest for loans that are eligible for cancellation. Type Z deferments cannot be processed during a borrower’s grace period since he/she should be allowed the full benefit of their grace period. back to top What kind of deferment can be processed for borrowers who are in jail? Borrowers who are currently in jail are eligible for the same types of deferments as other borrowers. Typically, economic hardships and forbearances are used.
