To qualify for student loan deferment, you must meet specific eligibility criteria set by your loan servicer, such as being enrolled in school at least half-time, experiencing economic hardship, or serving in the military. Deferment lets you temporarily pause federal student loan payments, and for most loan types, interest does not accrue during the deferment period. This guide explains the main eligibility paths and how to apply.
What Is Student Loan Deferment?
Student loan deferment is a temporary pause on your loan payments, granted under certain conditions. Unlike forbearance, which also pauses payments but usually accrues interest, deferment on federal subsidized loans and Perkins Loans does not accrue interest. For unsubsidized loans, interest continues to accrue, but you can choose to pay it during the deferment to avoid capitalization.
General Eligibility Requirements
To qualify for deferment, you must have federal student loans in good standing (not in default). Private loans are not covered by federal deferment rules, so contact your private lender for options. The most common qualifying situations include:
- Enrollment in an eligible college or career school at least half-time
- Unemployment or inability to find full-time work (for up to 3 years)
- Economic hardship, such as receiving public assistance or serving in the Peace Corps
- Active duty military service or service in the National Guard during a war or national emergency
- Post-active-duty student deferment for recently returned service members
- Cancer treatment deferment for up to 3 years
Types of Deferment and How to Qualify
In-School Deferment
If you are enrolled at least half-time at an eligible school, you automatically qualify for in-school deferment. Your school reports your enrollment to the National Student Loan Data System (NSLDS), and your servicer applies the deferment. This also applies to graduate fellowship programs.
Unemployment Deferment
You can qualify if you are actively seeking full-time employment but cannot find it. You must register with a state employment agency and provide proof of your job search. This deferment lasts for up to 36 months, and you must reapply every 6 months.
Economic Hardship Deferment
Economic hardship deferment is available if you receive federal or state public assistance (e.g., SNAP, TANF), serve in the Peace Corps, or earn less than 150% of the federal poverty guideline for your family size. This deferment also lasts up to 3 years.
Military Service Deferment
Active duty military service members, including those serving in the National Guard during a war or national emergency, qualify for deferment. Post-active-duty deferment is also available for 13 months after your service ends if you were on active duty during a qualifying period.
Cancer Treatment Deferment
If you are undergoing cancer treatment, you can qualify for a deferment for up to 3 years, including 6 months after treatment ends. You need to provide a doctor’s certification.
How to Apply for Deferment
Applying for deferment is straightforward. Follow these steps:
- Contact your loan servicer to request a deferment form.
- Complete the form and attach any required documentation (e.g., enrollment certificate, proof of unemployment, or military orders).
- Submit the form to your servicer before your payment due date to avoid late fees.
- Keep copies of all documents and track your deferment end date.
You can also check if you qualify using the U.S. Department of Education’s online tools, but always confirm with your servicer.
Comparison of Deferment vs. Forbearance
| Feature | Deferment | Forbearance |
|---|---|---|
| Interest on subsidized loans | Does not accrue | Accrues |
| Interest on unsubsidized loans | Accrues | Accrues |
| Maximum duration (typical) | Up to 3 years per reason | Up to 12 months at a time |
| Qualifying reasons | School, unemployment, hardship, military, cancer | Financial difficulty, medical expenses, etc. |
| Application required | Yes, with documentation | Yes, but often simpler |
Important Deadlines and Timelines
Deferment periods are not automatic; you must apply before your payment due date. For unemployment and economic hardship, you need to reapply every 6 to 12 months. The total deferment time for these categories is capped at 3 years each, so track your usage. For in-school deferment, your school’s certification is valid for one academic year, so you may need to reapply each year.
Tips to Make the Process Smoother
- Keep your contact information updated with your loan servicer.
- Set reminders for reapplication deadlines.
- If you have multiple federal loans, confirm that all are covered by the deferment.
- Consider paying accruing interest on unsubsidized loans during deferment to avoid interest capitalization.
When Deferment Is Not the Best Option
If you do not qualify for deferment, consider income-driven repayment plans, which base your monthly payment on your income and can be as low as $0. These plans also count toward loan forgiveness after 20 or 25 years. Forbearance is a short-term option but should be used sparingly because interest continues to accrue on all loan types.
Final Summary
To qualify for student loan deferment, you must meet one of the specific eligibility categories, such as being in school, unemployed, facing economic hardship, serving in the military, or undergoing cancer treatment. Always apply through your loan servicer with proper documentation, and remember that deferment is not automatic. If you are unsure, contact your servicer to discuss your options and choose the best path for your financial situation.
Frequently Asked Questions
Can I get a student loan deferment if I am unemployed?
Yes, you can qualify for an unemployment deferment if you are actively seeking full-time work and are registered with a state employment agency.
How long can I defer my student loans?
Most deferments last up to 3 years per qualifying reason, but you may need to reapply every 6 to 12 months.
Does interest accrue during student loan deferment?
For subsidized federal loans and Perkins Loans, interest does not accrue. For unsubsidized loans, interest does accrue.
What documents do I need to apply for deferment?
You typically need a completed deferment form from your loan servicer, plus proof like an enrollment certificate, unemployment records, or military orders.
Can I defer private student loans?
No, federal deferment rules do not apply to private loans. Contact your private lender to ask about forbearance or other options.
