Deferment Options
If you are unable to repay a loan that is
part of the federal education loan program, there are deferment
options for which you may be eligible. A deferment allows you to
postpone your scheduled monthly payments.
If the loan is a subsidized Direct Loan, the federal government
may pay the interest during periods of deferment.
If the loan is an unsubsidized Direct Loan, you can pay the
interest or it will be capitalized back (added on) to the principal
of the loan.
You should notify your loan servicer immediately if you think
you are having difficulty in repaying your student loan.
The Federal
Student Aid website has tools and information to assist
you. The Loan Simulator tool can help you understand the
best repayment options and the impact of deferments. For detailed
information on deferments, see Student Loan Deferment on StudentAid.gov
for details.
To see if you qualify for any deferment option, please answer
the following questions:
1. Are you enrolled at least half-time in college or a
career school?
If yes, you may be eligible for a deferment. Please contact your
loan officer for information.
2. Are you enrolled in an approved graduate fellowship
program?
If yes, you may be eligible for a deferment. Please contact your
loan officer for information.
3. Are you in an approved rehabilitation training
program for the disabled?
If you are in a rehabilitation training program that is
licensed, approved, certified, or otherwise recognized as providing
rehabilitation training to qualified individuals by a state agency
responsible for vocational rehabilitation, drug abuse treatment,
mental health services, or alcohol treatment programs, or by the
Department of Veterans Affairs, you may be eligible for an
education related deferment. You will need to complete a deferment
form and send completed forms to the lender or servicer of your
loan(s).
4. Are you unemployed, or unable to find full-time
employment?
If yes, you may be eligible for a deferment. This
temporarily pauses your loan payments while you look for work, and
you won't have to make payments during the approved period.
But starting July 1, 2027, this option will no
longer be available for new loans borrowed on or
after that date. If you already have loans before that deadline,
you can still use unemployment deferment under the current
rules.
See Student Loan Deferment on StudentAid.gov
5. Are you currently in a period of economic hardship
(this includes service in the Peace Corps)?
If yes, you may be eligible for a
deferment.
But starting July 1, 2027, this option will no
longer be available for new loans borrowed on
or after that date. If you already have loans before that deadline,
you can still use unemployment deferment under the current
rules.
See Student Loan Deferment on StudentAid.gov
6. Are you currently on active military service during a
war, military operation, or national emergency?
If yes, you may be eligible for a deferment. Please contact your
loan officer for information.
7. Are you within the 13-month period following the
conclusion of qualifying for active duty military service, or have
you returned to enrollment on at least a half-time basis, whichever
is earlier?
If yes, you may be eligible for a deferment. Please contact your
loan officer for information.