To get a deferment for student loans, you must apply through your loan servicer and meet specific eligibility requirements, such as enrollment in school, unemployment, economic hardship, or military service. Deferment temporarily pauses your loan payments, and for most federal loans, interest does not accrue during this period. This guide explains the process, types of deferment, and how to apply successfully.
What Is a Student Loan Deferment?
A deferment is a period when you are allowed to postpone making payments on your federal student loans. During a deferment, you are not required to make payments, and for subsidized loans, the government pays the interest that accrues. For unsubsidized loans, interest continues to accrue and will be added to your loan balance if not paid.
Deferment is different from forbearance, which also pauses payments but always accrues interest on all loan types. Knowing which option fits your situation is important before applying.
Who Is Eligible for a Deferment?
Eligibility depends on the type of deferment you request. The most common categories include:
- In-school deferment: If you are enrolled at least half-time at an eligible school.
- Unemployment deferment: If you are unemployed or working less than full-time and seeking full-time work.
- Economic hardship deferment: If you are receiving public assistance, serving in the Peace Corps, or earning a low income relative to your debt.
- Military service deferment: If you are on active duty during a war, military operation, or national emergency.
Private student loans may offer deferment options, but terms vary by lender. Check with your loan servicer for details.
How to Apply for a Deferment
Applying for a deferment is a straightforward process, but you must act early. Follow these steps:
- Contact your loan servicer to request a deferment application. You can find your servicer by logging into your account on the Federal Student Aid website.
- Complete the application form and provide any required documentation, such as proof of enrollment, unemployment benefits, or income.
- Submit the form before your next payment due date to avoid a missed payment.
- Keep a copy of your application and any confirmation from your servicer.
Most servicers allow you to apply online, by mail, or by phone. Make sure to submit your application before your payment is due to avoid delinquency.
Types of Deferment and Their Requirements
Here is a table comparing the main types of federal student loan deferment:
| Type | Eligibility | Duration | Interest on Subsidized Loans |
|---|---|---|---|
| In-school | Enrolled at least half-time | While enrolled, plus 6 months after | Paid by government |
| Unemployment | Unemployed or working less than full-time | Up to 3 years | Paid by government |
| Economic hardship | Receiving public assistance or low income | Up to 3 years | Paid by government |
| Military service | Active duty during military operations | While on active duty, plus 180 days after | Paid by government |
Each type has specific documentation requirements. For example, unemployment deferment requires proof of unemployment, while economic hardship requires income documentation.
When to Consider a Deferment
Deferment is a good option if you are temporarily unable to make payments but expect to return to work or school soon. However, if you have unsubsidized loans, interest will accrue, increasing your total debt. Compare deferment with income-driven repayment plans, which may offer lower payments based on your income.
If you are in default, deferment is not available. You must first resolve the default through loan rehabilitation or consolidation.
How to Request a Deferment for Economic Hardship
For economic hardship, you must provide evidence such as a letter from your employer showing your income, or documentation of public assistance. The servicer will evaluate your income against the federal poverty guidelines for your family size. If approved, the deferment lasts for up to one year and can be renewed up to three years total.
How to Request a Deferment for Unemployment
To apply for unemployment deferment, you must be receiving unemployment benefits or be actively seeking work. You will need to provide proof such as unemployment insurance stubs or a written statement from a state employment office. The deferment is granted in 12-month increments, up to 36 months total.
Tips for a Successful Deferment Application
Follow these tips to avoid delays:
- Apply early – at least 30 days before your payment due date.
- Provide complete documentation – missing papers cause rejection.
- Keep your contact information current with your servicer.
- If you are denied, ask for a review or consider forbearance as a backup.
What Happens After the Deferment Ends?
When your deferment ends, you must resume making payments. Your servicer will send a statement with your new payment amount and due date. If you have unsubsidized loans, the accrued interest may be capitalized, increasing your principal balance, which means your monthly payment might be higher.
If you still cannot afford payments, explore income-driven repayment plans or apply for a different deferment or forbearance. Always communicate with your servicer to avoid default.
Deferment vs. Forbearance: Which Is Better?
Deferment is often better because interest does not accrue on subsidized loans. Forbearance, on the other hand, always accrues interest on all loans. However, deferment has stricter eligibility requirements. If you do not qualify for deferment, forbearance may be your only option, but use it as a last resort.
In summary, to get a deferment for student loans, you must identify the right type, gather documentation, and submit a timely application. Deferment can provide valuable breathing room, but it is not automatic – you must apply and be approved. Always stay in contact with your loan servicer and plan for when payments resume.
Frequently Asked Questions
How do I apply for a student loan deferment?
Contact your loan servicer to request a deferment application, complete it, and submit the required documentation before your next payment due date.
What qualifies as an economic hardship for student loan deferment?
Economic hardship includes receiving public assistance, serving in the Peace Corps, or having income below 150% of the federal poverty line for your family size.
Can I get a deferment if I am unemployed?
Yes, if you are unemployed or working less than full-time and seeking full-time work, you may qualify for an unemployment deferment for up to three years.
Does interest accrue during a student loan deferment?
For subsidized loans, the government pays the interest during deferment. For unsubsidized loans, interest accrues and is added to your loan balance if unpaid.
How long can I defer my student loans?
The maximum deferment period varies by type, but most deferments last up to three years, with in-school deferment lasting as long as you are enrolled.
