If you are struggling to make your student loan payments, you may be wondering how to defer your student loans. Deferment lets you temporarily pause payments on your federal student loans, and in some cases, interest may not accrue. This guide explains the process, who qualifies, and what you need to do to get relief.
What Is Student Loan Deferment?
Deferment is a period when you can stop making payments on your federal student loans. It is different from forbearance, which also pauses payments but always accrues interest. With deferment, if you have subsidized federal loans, the government pays the interest during the deferment period.
For unsubsidized loans, interest will still accrue, and you may want to pay it to avoid it being added to your principal balance. Deferment is not automatic—you must apply and meet specific eligibility requirements.
Who Qualifies for Deferment?
You may qualify for deferment in several situations. The most common include:
- Enrollment in a college, university, or career school at least half-time
- Unemployment or economic hardship (including receiving public assistance)
- Active military service during a war, military operation, or national emergency
- Post-active-duty military service (for up to 13 months after your service)
- Cancer treatment (for up to 3 years after diagnosis)
- Graduate fellowship or rehabilitation training program
Each type of deferment has its own application form and documentation requirements. Check with your loan servicer to see which deferment you may qualify for.
How to Apply for Deferment
Follow these steps to apply for deferment on your federal student loans:
- Contact your loan servicer. They are your point of contact for all deferment requests.
- Ask for the correct deferment form. For example, the Economic Hardship Deferment form or the In-School Deferment form.
- Complete the form. Provide accurate information and attach any required documents, such as proof of unemployment or enrollment.
- Submit the form. Send it to your servicer by mail, fax, or online upload. Keep a copy for your records.
- Keep making payments until approved. If you stop paying before your deferment is approved, you may be considered delinquent.
Your servicer must notify you in writing of the approval or denial. If denied, you can appeal or ask about other repayment options.
Types of Deferment Compared
| Type of Deferment | Eligibility | Interest on Subsidized Loans | Maximum Duration |
|---|---|---|---|
| In-School | Enrolled at least half-time | Paid by government | While enrolled + 6 months grace |
| Unemployment | Unemployed or underemployed | Paid by government | Up to 3 years |
| Economic Hardship | Receiving public assistance or low income | Paid by government | Up to 3 years |
| Military Service | Active duty during qualifying service | Paid by government | While on duty + 13 months |
| Cancer Treatment | Undergoing treatment | Paid by government | Up to 3 years |
Note that private student loans may offer deferment, but the terms vary by lender. Always ask your private lender about their deferment options.
Important Details to Know
Deferment is not automatic—you must reapply periodically. For example, economic hardship deferment requires an annual renewal. Keep track of your deferment end date and reapply before it expires to avoid missing payments.
If you have defaulted on your loans, you may not be eligible for deferment. You may need to first rehabilitate your loans or make other arrangements. Also, deferment does not extend your loan term; it simply pauses payments, and your repayment period may be extended accordingly.
Alternatives to Deferment
If you do not qualify for deferment, consider these options:
- Income-driven repayment plans – Your payment is based on your income and family size.
- Forbearance – Pauses payments, but interest always accrues.
- Loan consolidation – Combine multiple loans into one, but may not reduce payments.
- Student loan forgiveness programs – Such as Public Service Loan Forgiveness for qualifying public service workers.
Compare these options to see which one fits your situation best. Each has pros and cons, so read the fine print.
Final Summary
Deferring your student loans can give you temporary relief, but you must apply through your loan servicer and meet eligibility rules. Understand which deferment type you qualify for, submit the correct form, and keep paying until approved. If deferment isn’t possible, explore income-driven repayment or forbearance. Always stay in communication with your servicer to avoid default.
Frequently Asked Questions
How long can I defer my student loans?
Deferment periods vary by type, but most are limited to three years total, except for in-school deferment which lasts while you are enrolled at least half-time.
Do I have to pay interest during deferment?
For subsidized federal loans, the government pays the interest during deferment. For unsubsidized loans, interest accrues, and you may want to pay it to avoid capitalization.
Can I defer my student loans if I am unemployed?
Yes, you can apply for an unemployment deferment if you are unemployed or underemployed and seeking full-time work.
What is the difference between deferment and forbearance?
Deferment may not accrue interest on subsidized loans, while forbearance always accrues interest on all loan types.
How do I apply for student loan deferment?
Contact your loan servicer, request the appropriate deferment form, complete it, and submit it with any required documentation.
