To defer student loans means to temporarily postpone your loan payments. Here is how you can defer student loans and what you need to know:
How to Defer Student Loans
- Identify the type of deferment you qualify for: Federal student loans have several deferment types, including in-school deferment, economic hardship, unemployment, military service, cancer treatment, graduate fellowship, rehabilitation training, and Parent PLUS borrower deferment
- Apply for deferment: You must fill out the appropriate deferment form for your loan type and submit it to your loan servicer. You may need to provide documentation supporting your eligibility, such as proof of enrollment, income, or military service
- Contact your loan servicer: If you are experiencing financial hardship or need help understanding the process, contact your loan servicer. They can guide you on how to apply and what documentation is required
- Continue making payments until deferment is approved: You need to keep paying your loans until you receive official confirmation that your deferment has been granted
Important Details About Deferment
- Federal loans: Most federal loans automatically enter in-school deferment if you are enrolled at least half-time. Other deferments require application and qualification
- Interest accrual: Interest does not accrue on Direct Subsidized Loans or Perkins Loans during deferment, but it does on Direct Unsubsidized and PLUS Loans. If unpaid, interest may capitalize (be added to the loan principal) after deferment ends
- Private loans: Deferment options vary by lender and are not guaranteed. You must check with your private loan lender about available deferment programs
- Duration: Deferment periods vary by type but can last up to 3 years for some federal deferments like economic hardship or unemployment
- Reapplying: Some lenders allow you to apply for deferment multiple times, often in 12-month increments
Summary Steps to Defer Student Loans
- Determine if you qualify for deferment based on your situation (school enrollment, unemployment, military service, etc.).
- Obtain and complete the deferment application form from your loan servicer or lender.
- Gather any required documents proving your eligibility.
- Submit the application and documents to your loan servicer.
- Continue payments until you receive confirmation of deferment approval.
- Monitor your loan status and interest accrual during deferment.
This process helps you temporarily pause payments without going into default, but be aware of how interest may affect your loan balance during this time
