How to Apply for Student Loan Deferment

Student loan deferment offers a temporary pause in required loan payments, providing borrowers with financial relief during specific challenges or life events. Understanding the process and requirements for deferment can help manage student loan obligations effectively.

Determining Your Eligibility

Eligibility for student loan deferment depends on meeting specific criteria for various deferment types, primarily for federal student loans. Identifying the type of deferment that aligns with your circumstances is the first step, as each has distinct requirements and supporting documentation. Eligibility can vary based on your loan type, such as federal versus private, and when the loan was initially disbursed.

One common deferment type is the in-school deferment, which is often automatically applied if you are enrolled at least half-time at an eligible college or career school. If automatic deferment does not occur, you may need to contact your school to report your enrollment status to your loan servicer. For those experiencing job loss, unemployment deferment allows a temporary halt in payments for up to three years. To qualify, you must either be receiving unemployment benefits or actively seeking full-time employment. Documentation usually includes proof of unemployment benefits or a certification of your job search efforts.

Economic hardship deferment is available for borrowers facing significant financial difficulties, for up to three years. You may qualify if you are receiving means-tested benefits, such as Temporary Assistance for Needy Families (TANF) or Supplemental Nutrition Assistance Program (SNAP). Another path to eligibility is working full-time but having a monthly income that does not exceed 150% of the poverty guideline for your family size. Peace Corps volunteers also qualify under this category. Required documentation can include income statements or proof of public assistance.

Military service deferment is an option for service members on active duty or for a period following active duty. You will need to provide official military orders or a statement from your commanding officer to verify your active duty status. Deferments are also available for those enrolled in approved graduate fellowship programs or rehabilitation training programs. For graduate fellowships, you must be enrolled as a regular student in a program approved by the Department of Education. Rehabilitation training deferment covers programs requiring certification from a licensed agency.

A specific deferment exists for individuals undergoing cancer treatment, covering the period of active treatment and an additional six months after treatment concludes. It requires physician certification of your treatment. It is important to confirm your specific loan type and its interest accrual rules; interest on subsidized federal loans does not accrue during deferment, while interest on unsubsidized federal loans and PLUS loans continues to accrue. Before proceeding, contact your loan servicer to understand the exact eligibility requirements and documentation pertinent to your specific loans.

Preparing Your Application

Beginning the application process for student loan deferment involves identifying your loan servicer and obtaining the correct forms. If you are unsure who your servicer is, you can find this information on your loan statements or by accessing your account through the National Student Loan Data System (NSLDS). Each loan servicer will have specific deferment forms, which are available on their website or by contacting them directly.

Once you have identified the appropriate form for your deferment type, gather all necessary information and supporting documentation. This includes personal details such as your name, Social Security number, and loan account numbers. You will also need to provide specific dates related to the reason for your deferment, such as the start and end dates of unemployment or academic enrollment. Supporting documents, as outlined in the eligibility criteria for each deferment type, are essential.

Carefully complete the deferment application form, ensuring all sections are filled out accurately and completely. Precise dates are particularly important, as these will determine the duration of your deferment period. Attaching all required supporting documentation is important to avoid delays in processing your request. Any missing information or errors could lead to the rejection of your application or prolonged review times.

Before submitting, thoroughly review the completed application and all attached documents for accuracy. Make copies of the entire application package for your personal records. This provides a complete reference and can be useful if questions arise during processing.

Submitting and Following Up

Once your deferment application is fully prepared, submit it to your loan servicer. Common methods include mailing the physical form, submitting through an online portal, or faxing. When mailing, consider using certified mail with a return receipt for proof of delivery. If available, upload documents directly through the servicer’s secure website.

After submission, anticipate receiving a confirmation from your loan servicer, which might be an email or a notification within your online account. It is important to monitor your loan account status regularly through your servicer’s online portal or by contacting them directly to track the progress of your application. Processing times can vary, ranging from a few business days to several weeks, depending on the servicer and the complexity of your request.

During the processing period, continue making your regular loan payments if you are able. This prevents any potential late fees or negative impacts on your credit history should the deferment not be approved immediately. Once your deferment is approved, you will receive a confirmation letter detailing the approved deferment period and any updated payment schedules. If your application is denied, the servicer should provide a reason for the denial. You can then address the reason for denial, appeal the decision, or explore alternative options for managing your student loan payments.