Postponing Payments With Deferment or Forbearance

If you face a situation in which you feel you can’t handle your loan payments, you may be able to temporarily postpone them with a deferment or forbearance.

Deferment

A deferment allows you to temporarily suspend your payments. Conditions such as unemployment, extreme economic hardship, enrolling in school at least half-time, or being on active military duty qualify borrowers for a deferment. Visit our forms page for a complete listing of deferment types and criteria.

Eligibility:
Deferment Eligibility Dates	Deferment Types
All Loans, No time stipulation	– Military Deferment – In-School Deferment
Loan taken out after July 1, 1993	– Economic Hardship Deferment – Rehabilitation Training – Graduate Fellowship
No time stipulation, but no loan balance on or before July 1, 1987	– Education-Related Deferment Request (fellowship, internship/residency, teacher shortage area) – Please Note: The kinds of eligible programs are based on certain dates, see form (pdf, 92 KB) itself for details.
No outstanding loan balance after October 1, 1998	– Teacher Loan Forgiveness Forbearance
No time stipulation	– Unemployment Deferment (if a pre-1993 borrower, total cumulative limit available is 24 months, post-1993 borrower, 36 months)

The most common deferments used are those for economic hardship, in-school status, and unemployment.

During a deferment, the federal government pays any interest that accrues on your subsidized loans at the end of the deferment, and the total amount of your loan will not increase. However, unsubsidized loans accrue interest during a deferment, just as they would in repayment status.

To get a deferment, you must complete an application and submit it to your lender or servicer for processing. Some deferments, including economic hardship deferments, may require supporting documentation. Your lender may determine your eligibility for in-school deferment based on confirmation of your half-time enrollment status through NLSDS. The lender will review the application; if you meet the criteria and have not exhausted the maximum total time allowed, your lender or servicer must and will grant your deferment. However, you should always continue to make your monthly loan payments until your lender sends formal notification that your deferment has been approved.

Forbearance

If you don’t meet the criteria for a deferment and have explored other options, such as a change in payment schedule, you may qualify for forbearance. Forbearances are usually reserved for cases of financial hardship or illness and in most circumstances are granted solely at the discretion of the lender or servicer.

Like a deferment, forbearance is a temporary suspension of payment. However, in forbearance, both subsidized and unsubsidized portions of your loan continue to accrue interest. At the end of the forbearance period, the interest is capitalized (added to the principal balance of the loan). In other words, forbearance increases the amount you owe. Therefore, we strongly recommend that you attempt to qualify for a deferment or new repayment schedule to lower your monthly payments before you apply for forbearance.

To apply for forbearance, contact your lender or servicer directly. Some servicers allow you to apply directly online or even by phone, while others require written applications. Some servicers will require more documentation than others.

You should continue making monthly loan payments until your lender or servicer notifies you that forbearance has been granted. If formal notification does not arrive promptly, contact your lender or American Student Assistance^® (ASA) to make sure that your paperwork was received and that the forbearance has been applied.