If you are struggling to make your federal student loan payments, you may be able to pause them temporarily with a deferment. Applying for student loan deferment is a straightforward process, but you need to know the right steps and forms. This guide explains exactly how to apply, what you need, and what to expect.
What Is Student Loan Deferment?
Student loan deferment lets you temporarily stop making payments on your federal student loans. During a deferment, interest may or may not accrue, depending on your loan type. For subsidized federal loans, the government pays the interest during the deferment period. For unsubsidized loans, interest continues to accrue, and you will owe it later.
Deferment is different from forbearance. Forbearance also pauses payments, but interest always accrues on all loan types. Deferment is often a better option if you qualify.
Who Qualifies for Deferment?
You may qualify for a deferment if you are enrolled in school at least half-time, in a graduate fellowship, in a rehabilitation training program, or experiencing unemployment or economic hardship. Other situations include military service, cancer treatment, or a post-active-duty period for National Guard members.
Each deferment type has its own eligibility rules and time limits. For example, unemployment deferment is usually granted in 12-month increments, up to 36 months total. Economic hardship deferment is also limited to 36 months.
Step-by-Step: How to Apply for Student Loan Deferment
Follow these steps to apply for a federal student loan deferment. The process is similar for all deferment types.
Step 1: Determine Your Loan Type
First, confirm that you have federal student loans. Private loans are not eligible for federal deferment. You can check your loan type by logging into your account on the Federal Student Aid website or by contacting your loan servicer.
Your loan servicer is the company that handles your billing and payments. You can find your servicer’s contact information on your monthly statement or online.
Step 2: Choose the Right Deferment Form
You need to fill out the correct form for your situation. The most common forms are the In-School Deferment Request, the Unemployment or Economic Hardship Deferment Request, and the Military Service Deferment Request. Each form is available on the Federal Student Aid website.
If you are unsure which form to use, contact your loan servicer for guidance. They can help you choose the right one.
Step 3: Complete the Form and Gather Documentation
Fill out the form completely and accurately. You will need to provide your loan information, Social Security number, and contact details. Depending on the deferment type, you may need to attach supporting documents, such as proof of unemployment benefits or a letter from your school.
Make sure you sign the form. Unsigned forms are returned and delay the process.
Step 4: Submit the Form to Your Loan Servicer
Submit your completed form and any required documents to your loan servicer. You can usually upload the form online, fax it, or mail it. Check your servicer’s website for the preferred submission method.
Keep a copy of everything you submit for your records. Note the date you submitted, so you can follow up if needed.
Step 5: Wait for Approval and Keep Making Payments Until Notified
Your loan servicer will review your application and notify you of the decision. This can take a few weeks. While waiting, continue making your regular payments to avoid late fees.
If your deferment is approved, your servicer will update your account and inform you of the new payment due date. If denied, you can ask for reconsideration or explore other options.
What to Do If You Have Private Student Loans
Private loans are not covered by federal deferment rules. However, many private lenders offer their own hardship programs. Contact your private lender directly to ask about temporary payment relief.
Be aware that private lenders may charge fees or accrue interest during the pause. Always read the terms carefully before agreeing to any plan.
Important Deadlines and Time Limits
Deferment is not indefinite. Each type has a maximum duration. The table below shows common deferment types and their typical limits.
| Deferment Type | Maximum Duration | Interest Accrues? |
|---|---|---|
| In-School (at least half-time) | While enrolled, plus 6 months post-graduation | No for subsidized loans; yes for unsubsidized |
| Unemployment | 36 months total | No for subsidized loans; yes for unsubsidized |
| Economic Hardship | 36 months total | No for subsidized loans; yes for unsubsidized |
| Military Service | While on active duty, plus 13 months | No for subsidized loans; yes for unsubsidized |
Tips for a Smooth Deferment Application
To avoid delays, follow these practical tips:
- Submit your application at least 30 days before your next payment is due.
- Use the exact name and Social Security number that appear on your loan documents.
- Double-check that you have signed the form and included all required attachments.
- Contact your loan servicer if you have not received a decision after 30 days.
- Consider setting up automatic payments once deferment ends to avoid missing a payment.
What Happens After the Deferment Ends?
When your deferment period ends, you will need to resume making payments. Your loan servicer will send you a new repayment schedule. If you still cannot afford payments, you may apply for an income-driven repayment plan, which can lower your monthly bill.
If you miss payments after the deferment ends, you risk default, which can hurt your credit and lead to wage garnishment. So, plan ahead and contact your servicer if you need more help.
Summary
Applying for student loan deferment is a simple process: determine your eligibility, complete the correct form, submit it to your loan servicer, and keep making payments until approved. Remember that deferment is temporary, and you must resume payments when it ends. If you have private loans, contact your lender directly for options. Always stay in touch with your loan servicer to avoid surprises.
Frequently Asked Questions
How do I apply for student loan deferment?
To apply, fill out the correct deferment request form from the Federal Student Aid website, attach any required documents, and submit it to your loan servicer. Your servicer will review and notify you of the decision.
What forms do I need to apply for student loan deferment?
You need the specific deferment form that matches your situation, such as the In-School Deferment Request or the Unemployment and Economic Hardship Deferment Request. These forms are available on the Federal Student Aid website.
Can I apply for student loan deferment online?
Yes, most loan servicers allow you to upload your completed deferment form online through their website. You can also submit it by fax or mail, but online is fastest.
How long does it take to get approved for student loan deferment?
Approval usually takes a few weeks, but it can vary by servicer. You should continue making payments until you receive a confirmation that your deferment is approved.
What happens if my student loan deferment is denied?
If denied, you can ask your loan servicer for reconsideration or provide more documentation. You may also explore other options like income-driven repayment plans or forbearance.
