How to Apply for Deferment on Student Loans

Student loan deferment offers a temporary pause in loan payments for borrowers. This option can provide financial relief by suspending monthly obligations. Understanding the application process, from eligibility to submission, is important for those seeking this temporary payment suspension.

Understanding Deferment Eligibility

Several types of deferment are available for federal student loans, each with specific criteria. In-school deferment applies if you are enrolled at least half-time. This deferment is often applied automatically based on your school’s enrollment reporting. Graduate or professional students with a Direct PLUS Loan may qualify for an additional six months of deferment after ceasing half-time enrollment.

Unemployment deferment is another option if you are experiencing joblessness. To qualify, you must either be receiving unemployment benefits or be actively seeking and unable to find full-time employment. This deferment can be granted for up to three years, often in six-month increments, requiring reapplication.

Economic hardship deferment is for those facing financial difficulties. Eligibility depends on factors like receiving means-tested federal or state public assistance (e.g., Supplemental Nutrition Program (SNAP) or Temporary Assistance for Needy Families (TANF)). You may also qualify if your income is below 150% of the poverty guideline for your family size and state, or if you are working full-time at or below the federal minimum wage. This deferment can be granted for up to three years, typically in one-year increments, and generally requires annual reapplication unless you are a Peace Corps volunteer.

Military service deferment is an option for active-duty service members. You may qualify if you are serving on active duty in the U.S. armed forces during a war, military operation, or national emergency. This deferment may also extend for 13 months following your return from active duty or until you return to school at least half-time.

Deferment options exist for individuals in approved graduate fellowship programs or rehabilitation training programs. Graduate fellowship programs provide financial support for graduate studies and research. Rehabilitation training programs provide vocational, drug abuse, mental health, or alcohol abuse treatment.

Preparing Your Deferment Application

Once you identify the appropriate deferment type, the next step involves gathering the necessary information and documentation. You will typically need to provide personal identifying details such as your full name, current address, telephone number, and Social Security number. Additionally, you must include information specific to your loan servicer, including their name and your loan account number.

Required documents vary by deferment type. For in-school deferment, proof of at least half-time enrollment is necessary. This may be verified by your school reporting to your loan servicer, or you may need to submit a certified in-school deferment form. If your school is not listed with the National Student Clearinghouse, you may need to proactively request and submit the form.

For unemployment deferment, you must provide documentation that you are receiving unemployment benefits, such as a copy of benefits statements from your state’s Department of Labor. If actively seeking employment, you may need to certify at least six full-time job attempts in six months and registration with an employment agency if available. Economic hardship deferment applications often require proof of income (e.g., recent pay stubs, federal income tax return). If receiving public assistance, documentation of participation in programs like SNAP or TANF is required.

Military service deferment applications require official military orders, a DD Form 214, or a signed letter from your commanding officer. For graduate fellowship or rehabilitation training deferments, a certification from an authorized program official is needed, verifying enrollment and program eligibility. Loan deferment forms are generally available directly from your loan servicer’s website or the Federal Student Aid website. Review form instructions to ensure all required fields are completed and supporting documents attached.

Submitting Your Application

After meticulously preparing your deferment application and gathering all supporting documentation, the next crucial step is submitting it to your student loan servicer. The primary method for submission is often mailing the completed form and documents. When mailing, it is advisable to use certified mail with a return receipt requested. This provides proof of mailing and confirmation of delivery, which can be important for your records.

Many loan servicers offer online portals or secure message systems for uploading applications and supporting files. This method can be efficient, but ensure the portal is secure and documents are uploaded correctly. Some servicers may accept faxed applications; confirm preferred submission methods directly with your loan servicer.

Send your application to the correct address or designated online portal. Using incorrect contact information could delay processing. Maintain copies of your entire application package, including forms, supporting documents, and any confirmation or tracking numbers. This record serves as proof of your application.

After You Apply

After submitting your deferment application, a processing period follows. It generally takes several weeks for loan servicers to review requests. Continue making scheduled loan payments until you receive official approval notification. Stopping payments before approval could lead to delinquency.

Your loan servicer will notify you of their decision. This notification usually comes as a letter, email, or an update to your online loan account. Monitor these communication channels. Upon approval, the notification will specify the deferment period’s start and end dates.

If approved, your payments will pause. Interest may or may not accrue, depending on your loan type. Interest generally does not accrue on Direct Subsidized Loans and Perkins Loans during deferment, but it typically does on unsubsidized federal loans and Direct PLUS Loans. If interest accrues and is not paid during deferment, it will be capitalized, added to your principal balance, increasing the total amount repaid.

If denied, the notification should include the reason. Contact your loan servicer to understand the denial and explore other options. They can clarify the reason and discuss alternative repayment solutions or temporary relief.