To get student loans deferred, you must apply for a deferment through your loan servicer, which temporarily pauses your payments. Federal student loans offer deferment for reasons like unemployment, economic hardship, or returning to school. Private lenders may have their own deferment options, but you must contact them directly to ask about eligibility.
Deferment is different from forbearance, which also pauses payments but usually continues to accrue interest. In many cases, subsidized federal loans do not accrue interest during deferment, while unsubsidized loans do. Understanding the difference can help you choose the best option for your situation.
What Is Student Loan Deferment?
Student loan deferment is a temporary pause on your monthly loan payments. It is available for federal student loans under certain conditions, such as enrollment in school, unemployment, or economic hardship. During deferment, you do not have to make payments, and for subsidized loans, the government pays the interest that accrues.
For unsubsidized loans, interest continues to accrue, and it may be capitalized (added to your loan balance) after the deferment ends. This means your total debt could increase, so it is important to understand the terms before applying.
How to Apply for Federal Student Loan Deferment
Follow these steps to request a deferment for your federal student loans:
- Contact your loan servicer to ask about deferment options. You can find your servicer by logging into your account on the Federal Student Aid website.
- Complete the appropriate deferment form, such as the Economic Hardship Deferment form or the Unemployment Deferment form. Your servicer can provide the correct form.
- Submit the form along with any required documentation, such as proof of unemployment or enrollment. Your servicer will review your application and notify you of the decision.
- If approved, your payments will be paused for the deferment period, which is usually up to 12 months at a time. You may need to reapply if you need an extension.
It is essential to keep making payments until your deferment is approved. If you stop paying without approval, you may be considered delinquent or default on your loans.
Types of Federal Deferment
Federal student loans offer several types of deferment, each with specific eligibility criteria:
- In-school deferment for students enrolled at least half-time.
- Unemployment deferment for those actively seeking full-time employment.
- Economic hardship deferment for those with low income or receiving public assistance.
- Military service deferment for active-duty service members.
Each type has a maximum duration, such as up to three years for economic hardship. Check with your servicer to see which deferment applies to your situation.
How to Get Private Student Loans Deferred
Private student loans are not automatically eligible for federal deferment programs. However, many private lenders offer hardship forbearance or deferment options. To request one, contact your lender directly and explain your circumstances. You may need to provide proof of hardship, such as medical bills or job loss.
Private lenders are not required to offer deferment, so it is not guaranteed. If your lender denies your request, ask about alternative repayment plans or temporary payment reductions. Always get any agreement in writing before you stop making payments.
Deferment vs. Forbearance: What’s the Difference?
While both deferment and forbearance allow you to pause payments, they differ in interest accrual. Deferment is often better for subsidized loans because interest does not accrue. Forbearance, on the other hand, always accrues interest, even on subsidized loans.
Here is a quick comparison:
| Feature | Deferment | Forbearance |
|---|---|---|
| Interest on subsidized loans | No interest accrues | Interest accrues |
| Eligibility | Specific reasons (e.g., school, hardship) | Financial hardship, medical expenses |
| Maximum duration | Varies by type (e.g., 3 years for hardship) | Up to 12 months at a time, 3 years total |
| Application process | Form and documentation | Request to servicer |
Choose deferment if you qualify, to avoid extra interest. If you do not qualify, forbearance may be a backup option.
Tips for a Successful Deferment Application
To increase your chances of approval, follow these tips:
- Apply as early as possible, before you miss a payment.
- Provide complete and accurate documentation to support your request.
- Keep a copy of your application and any correspondence with your servicer.
- Set a reminder to reapply if your deferment is about to expire.
If your deferment is denied, ask for the reason and consider appealing if you have new information. You can also explore income-driven repayment plans, which may lower your monthly payment based on your income.
What Happens After Deferment Ends?
When your deferment period ends, your loan servicer will send you a billing statement with your new payment amount. If interest was capitalized, your balance may be higher, and your payment may increase. You can always make extra payments to reduce interest costs.
If you still cannot afford payments, you may qualify for another deferment or a different repayment plan. Contact your servicer to discuss options before your deferment expires.
Summary
Getting your student loans deferred involves applying through your servicer with the correct form and proof of eligibility. Federal loans offer several deferment types, while private loans depend on your lender’s policies. Always keep paying until deferment is approved, and watch out for interest accrual on unsubsidized loans. If deferment is not possible, consider forbearance or income-driven repayment to manage your payments.
Frequently Asked Questions
How do I request a deferment on my student loans?
Contact your loan servicer and ask for a deferment form. Fill it out, provide required proof, and submit it. Your servicer will review and approve if you qualify.
Can I get my student loans deferred if I am unemployed?
Yes, you can apply for unemployment deferment if you are actively seeking full-time work. You may need to provide proof of unemployment and job search efforts.
Does interest accrue during student loan deferment?
For subsidized federal loans, interest does not accrue during deferment. For unsubsidized loans and private loans, interest usually continues to accrue and may be added to your balance.
How long can I defer my student loans?
Federal deferment periods vary by type, such as up to three years for economic hardship. You can reapply for additional periods if you still qualify.
What happens if my deferment request is denied?
If your deferment is denied, your servicer will explain why. You can appeal with new information or ask about forbearance or income-driven repayment plans.
