What is deferment?
A specific period of time during which you are approved to cease making payments of loan principal. Normally you may qualify for a deferment of your loan payments only after your repayment period begins. In other words, your grace period must have expired. However, you may request that the grace period be waived or shortened in order to be eligible for a deferment. The types of deferments for which you are eligible are specified by the terms of your loan(s). The criteria by which you may be granted a deferment is based on federal regulations. If your loan(s) is a subsidized Stafford loan, the federal government will pay the interest that accrues during the deferment period. If your loan(s) is unsubsidized, you are responsible for the interest that accrues during the deferment period.
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?
