Yes, you can defer student loans, but the rules depend on your loan type and your situation. Deferment lets you temporarily pause payments, and for some loans, interest does not accrue during this time. This guide explains the main options and how to request a deferment.
What Is Student Loan Deferment?
Deferment is a period when your loan payments are paused for a specific reason. You must apply and get approved before your payments stop. Interest may or may not build during deferment, depending on the loan type.
For federal subsidized loans, the government pays the interest during most deferments. For unsubsidized loans, you are responsible for the interest, which is added to your loan balance. Private lenders have their own rules, so check with them directly.
When Can You Defer Federal Student Loans?
The U.S. Department of Education offers several deferment options for federal student loans. You can request a deferment for specific life events or financial hardships. Here are the most common situations:
- In-school deferment: If you are enrolled at least half-time at an eligible school.
- Unemployment deferment: If you are unemployed and looking for work, or working less than 30 hours a week.
- Economic hardship deferment: If you receive public assistance or have a low income compared to the federal poverty level.
- Military service deferment: If you are on active duty during a war or national emergency.
- Cancer treatment deferment: If you are undergoing cancer treatment or recovering from it.
How Long Can You Defer?
Most deferments last up to three years. For example, unemployment deferment is limited to three years total. Economic hardship deferment also has a three-year maximum. In-school deferment lasts as long as you are enrolled at least half-time.
There is no lifetime limit on total deferment, but each type has its own cap. You must reapply for each period.
How to Apply for a Deferment
To apply, contact your loan servicer. They will give you the correct form for your situation. You can usually find forms online through your servicer’s website.
Fill out the form and provide any required documentation. For unemployment, you may need to show proof of job search. For economic hardship, you may need tax returns or pay stubs.
Send the completed form to your servicer. Keep a copy for your records. Your servicer must notify you if your deferment is approved or denied. If denied, you can appeal or ask about other options like forbearance.
Deferment vs. Forbearance: What’s the Difference?
Both deferment and forbearance pause payments, but they differ in interest charges. Deferment is usually better because interest may not accrue on subsidized loans. Forbearance always accrues interest on all loan types.
Forbearance is easier to get but costs more in the long run. You should try deferment first if you qualify.
| Feature | Deferment | Forbearance |
|---|---|---|
| Interest on subsidized loans | Paid by government (in most cases) | Accrues (you pay it) |
| Interest on unsubsidized loans | Accrues (you pay it) | Accrues (you pay it) |
| Application process | Must apply and qualify | Can be requested, often easier |
| Maximum time | Usually 3 years per type | Usually 12 months at a time, up to 3 years total |
Can You Defer Private Student Loans?
Private lenders are not required to offer deferment. However, many do. You must contact your lender to ask about options. Some private lenders may allow a short pause for hardship, but interest always continues to accrue.
Read your loan contract to see if deferment is mentioned. If not, ask your lender directly. Be prepared to explain your situation and provide proof of income or hardship.
What Happens After Deferment Ends?
When deferment ends, you must start making payments again. Your servicer will send you a statement with your new payment amount. If interest accrued during deferment, your balance may be higher, so your payment might increase.
You can also consider income-driven repayment plans to lower your monthly payment. These plans base your payment on your income and family size. You can apply at any time.
Actionable Tips for Deferring Your Student Loans
Follow these steps to make the process smoother:
- Contact your loan servicer as soon as you know you need help.
- Submit your deferment form before your next payment is due.
- Keep copies of all documents you send.
- Set a reminder to reapply before the deferment ends.
- If approved, check your account to confirm the deferment is active.
Summary
Deferment is a helpful option to pause federal student loans for up to three years in many cases. It is best for subsidized loans because interest does not accrue. Private loans may offer deferment, but interest always builds. Always apply in advance and keep track of your deferment end date. If you are unsure, contact your loan servicer to discuss your options.
Frequently Asked Questions
Can I defer my student loans if I am unemployed?
Yes, you can apply for an unemployment deferment if you are unemployed and looking for work, or working less than 30 hours a week.
How long can I defer my student loans?
Most federal deferments last up to three years per type, but in-school deferment can last as long as you are enrolled at least half-time.
Does interest accrue during student loan deferment?
For federal subsidized loans, interest does not accrue during most deferments. For unsubsidized loans, interest does accrue and is added to your balance.
Can I defer private student loans?
Private lenders are not required to offer deferment, but many do. Contact your lender to ask about hardship options.
How do I apply for a student loan deferment?
Contact your loan servicer to get the correct deferment form, fill it out with required documentation, and submit it before your next payment is due.
