If you’re struggling to make your student loan payments, you may be wondering how to put student loans in deferment. Deferment lets you temporarily pause payments, and in some cases, interest may not accrue. This guide explains the process, eligibility, and key steps to take as of August 2026.
What Is Student Loan Deferment?
Deferment is a period when you can stop making payments on your student loans for a set time. It is available for both federal and private loans, but the rules differ. For federal loans, some types of deferment are interest-free for subsidized loans, while unsubsidized loans continue to accrue interest.
Unlike forbearance, which also pauses payments, deferment is often preferred because interest may not build up on certain loans. You must apply for deferment through your loan servicer, and you need to meet specific eligibility criteria.
Who Is Eligible for Deferment?
Eligibility depends on your loan type and your situation. For federal student loans, common reasons for deferment include:
- Enrollment in an eligible college or career school at least half-time
- Unemployment or economic hardship (usually limited to three years)
- Active military service or National Guard duty during a war or national emergency
- Cancer treatment or rehabilitation for a disability
- Graduate fellowship or post-graduate internship
Private lenders have their own deferment policies, so you must check with your lender directly. Some may offer deferment for similar reasons, but it is not guaranteed.
How to Apply for Deferment: Step-by-Step
Applying for deferment is a straightforward process, but you must act before missing payments. Here are the steps:
- Contact your loan servicer – Find out who services your loans and ask about deferment options.
- Complete the deferment request form – Your servicer will provide the correct form, often available online.
- Provide supporting documents – You may need proof of enrollment, unemployment, or military orders.
- Submit the form and wait for approval – Your servicer will review your request and notify you of the decision.
Do not stop making payments until you receive written approval. If you stop early, you risk late fees or default.
Federal vs. Private Loan Deferment: Key Differences
| Feature | Federal Loans | Private Loans |
|---|---|---|
| Interest accrual during deferment | Subsidized loans: no interest accrual; Unsubsidized: interest accrues | Interest usually accrues, even during deferment |
| Eligibility reasons | Defined by law (enrollment, unemployment, etc.) | Varies by lender; may be limited |
| Maximum duration | Typically up to 3 years for economic hardship | Set by lender, often 12 months at a time |
| Application process | Standard form through servicer | Contact lender directly; may have own form |
Always read your loan agreement to understand the terms. If you have both federal and private loans, you must apply for deferment separately for each.
When Should You Consider Deferment?
Deferment is a good option if you have a temporary financial setback or are returning to school. However, it is not a long-term solution. Consider these factors:
- Deferment extends the life of your loan, meaning you will pay more interest over time (unless the loan is subsidized and interest is waived).
- If you have unsubsidized loans, interest will continue to accrue and may be added to your balance (capitalization), increasing what you owe.
- Deferment is not automatic – you must reapply for each period, and you must meet eligibility each time.
Alternatives to Deferment
If deferment is not the right fit, other options exist. Income-driven repayment (IDR) plans can lower your monthly payment to a percentage of your discretionary income. Forbearance is another option, but interest always accrues on all loan types.
For federal loans, you may also qualify for a temporary hardship forbearance, but that should be a last resort. Always compare the costs and benefits before choosing.
How to Stay on Track After Deferment
When your deferment ends, you will need to resume payments. Your servicer will send a statement with the new due date and amount. Set up automatic payments to avoid missing a due date, and recertify your income if you switch to an IDR plan later.
Keep records of all deferment requests and approvals. This helps if there are any disputes about your account.
Summary
Deferment can provide relief when you cannot make payments, but it is not automatic. Contact your servicer, submit the required forms, and keep paying until approved. Understand the differences between federal and private loans, and consider alternatives like income-driven repayment if deferment is not enough. Always read the fine print and stay in communication with your loan servicer to protect your credit and avoid default.
Frequently Asked Questions
How long can I defer my student loans?
Federal loans typically allow deferment for up to three years for economic hardship, while enrollment deferment lasts as long as you are in school at least half-time. Private lenders set their own limits, often 12 months at a time.
Do I have to pay interest during deferment?
For federal subsidized loans, interest does not accrue during certain deferments, but for unsubsidized loans and most private loans, interest does accrue and may be added to your balance.
Can I defer private student loans?
Yes, but it depends on your lender and your loan agreement. Contact your private lender to ask about deferment options and the application process.
What happens if I stop paying without approval?
If you stop making payments before your deferment is approved, you may face late fees, damage to your credit score, and even default. Always wait for written approval.
How do I apply for deferment on federal loans?
Contact your loan servicer to request a deferment form, fill it out, and submit it with any required documentation. Your servicer will review and notify you of the decision.
