• A deferment is a period of time during which your loan holder suspends your regular loan payments.
• Forbearance is way to temporarily lower or postpone your federal student loan payments.
• There are several types of deferments and forbearances available. You should contact your lender to see if you qualify for one.
• Some Guidelines to keep in mind:
  • the borrower must not be in default to receive a deferment or forbearance
  • interest may continue to accrue
  • receiving a deferment and forbearances are not automatic you must apply

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Deferments

• A deferment is a period of time during which your loan holder suspends your regular loan payments.
• Depending on the type of loan you have, the government may pay the interest for you during deferment periods.
• Deferments are granted for specific situations and have certain time limitations and conditions for eligibility. Common deferments:
  • Enrollment in school
  • Study in a graduate fellowship program
  • Rehabilitation training program for disabled individuals
  • Unemployment
  • Economic hardship
  • Military service

Depending upon when you receive your loan, you may be eligible for other types of deferments. To review your deferment options, choose a deferment eligibility chart based on your loan type and when your oldest outstanding loan of that type was first disbursed:

Federal Family Education Loan Program (Federal Stafford (subsidized and unsubsidized), PLUS (Parent Loans for Undergraduate Students), SLS (Supplemental Loan for Students) and Federal Consolidation Loans):

• Disbursed prior to July 1, 1987
• Disbursed from July 1, 1987 to June 30, 1993
• Disbursed on or after July 1, 1993

You must apply for a deferment.

• Keep a copy of your deferment application.
• DO NOT stop making payments until you have official notification that your request for a deferment is approved.

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Forbearance

• A forbearance is way to temporarily lower or postpone your federal student loan payments
• Your loan holder may grant a forbearance if you are willing but temporarily unable to make full or partial payments and do not qualify for a deferment
• During a forbearance, interest continues to accrue on all loan types
  • You may pay the interest, saving you money over the life of the loan.
  • If you do not pay the interest, your loan holder will add it to your principal balance when your forbearance ends. This increases your total debt.
• A forbearances is discretionary - it is completely up to your loan holder to grant one
• Under certain provisions, loan holders are required to grant a mandatory forbearance
• A forbearance is granted for a limited duration

• Contact your loan holder to request a forbearance
• Keep a copy of your forbearance application if you're required to submit one
• Do not stop making payments until you have official notification that your request for forbearance is approved
• Most loan holders are willing to help you through tough times, as long as you notify them early, while you're still making payments, and before you default on your loan