How to Apply for Student Loan Deferment

Student loan deferment offers borrowers a temporary pause in their monthly loan payments. This option exists to provide relief during specific life events, such as returning to school, experiencing unemployment, or facing economic hardship. Understanding the deferment process is important for borrowers seeking to manage their financial obligations and avoid delinquency or default on their federal student loans.

Understanding Deferment Eligibility

Numerous circumstances can qualify federal student loan borrowers for deferment. One common type is in-school deferment, which typically applies automatically if a borrower is enrolled at least half-time at an eligible college or vocational school. This deferment can extend for an additional six months after leaving school or dropping below half-time enrollment. Parent PLUS Loan borrowers can also apply for deferment while their child is enrolled at least half-time and for six months after, although this deferment is not automatic.

Economic hardship deferment is available for borrowers receiving means-tested government benefits, like welfare, or whose full-time earnings are below 150% of the federal poverty guideline for their family size and state. This deferment can last up to three years. Unemployment deferment can provide up to three years of relief for those receiving unemployment benefits or actively seeking employment without success. Military service and post-active-duty student deferments are also available for qualifying service members.

Additional deferment options exist for specific situations, including cancer treatment, graduate fellowship programs, and approved rehabilitation training programs. Each deferment type has distinct eligibility criteria and may require specific documentation to prove qualification. Borrowers can find detailed eligibility requirements and information on the official Federal Student Aid website (StudentAid.gov) or their loan servicer’s website. Checking these resources is a crucial first step to determine if one’s circumstances align with available deferment types.

Preparing Your Deferment Application

Preparing a deferment application involves gathering specific information and supporting documentation to demonstrate eligibility. Essential personal identification details, such as your full name, current address, and Social Security Number, are always required on the application form. You will also need to provide your loan servicer’s name and your loan account number.

The specific dates relevant to your deferment reason are also necessary. For instance, an in-school deferment requires enrollment dates and confirmation of at least half-time status, often provided by your school. For unemployment deferment, you might need to provide the start and end dates of unemployment benefits or documentation of your job search efforts. Economic hardship deferment may necessitate income details and proof of means-tested government benefit receipt or income below a certain poverty guideline threshold.

Supporting documents are crucial for verifying your eligibility. These can include an enrollment verification letter from your school, statements of unemployment benefits, military orders, or medical documentation from a physician for cancer treatment deferment. The official deferment application forms are typically available on your federal student loan servicer’s website or directly from StudentAid.gov. Read the entire form carefully before completing it, ensuring all informational fields are accurately filled out based on the details and documents you have collected.

Submitting Your Deferment Request

Once you have meticulously completed the deferment application form and gathered all required supporting documentation, the next step is submission. Borrowers typically have several methods available for sending their deferment request to their federal student loan servicer. Common submission options include mailing the completed form and documents, uploading them through an online portal on the servicer’s website, or faxing the materials.

If you choose to submit your application online, carefully follow the servicer’s specific instructions for uploading documents and completing the final submission steps, such as clicking a “submit” button or navigating through confirmation screens. For physical mail submissions, consider using certified mail with a return receipt. This provides proof of delivery, which can be important for your records.

Regardless of the submission method, it is always advisable to keep a complete copy of your filled-out application form and all supporting documents for your personal records. You should continue making your regular loan payments until you receive official confirmation that your deferment request has been approved. Failing to do so could lead to your loan becoming delinquent, potentially affecting your credit score.

After Your Application Is Submitted

After submitting your deferment application, your loan servicer will begin processing your request. The processing timeline can vary but typically ranges from a few days to several weeks, depending on the servicer and the complexity of your application. You will receive notification of the decision, either approval or denial, directly from your loan servicer.

If your deferment is approved, the notification will specify the deferment period and any implications regarding interest accrual. For some federal loans, such as Direct Subsidized Loans, interest may not accrue during deferment, meaning your loan balance will not increase. However, for other loan types, like Direct Unsubsidized Loans or PLUS Loans, interest will continue to accrue, and this unpaid interest may be capitalized (added to your principal balance) at the end of the deferment period, increasing the total amount you repay. It is important to confirm when payments will resume and if any interest payments are due during the deferment.

If your deferment application is denied, the loan servicer will provide the reasons for the denial. Upon denial, it is important to understand these reasons and contact your servicer for clarification or to explore alternative repayment options. Alternatives might include forbearance, which allows a temporary suspension or reduction of payments but always accrues interest, or enrolling in an income-driven repayment plan, which adjusts monthly payments based on your income and family size. Maintaining open communication with your loan servicer throughout this period is important to manage your account effectively.