How to Apply for Student Loan Deferment

Student loan deferment offers a temporary pause from payments due to specific life circumstances. It provides financial relief, preventing default during challenging times until a borrower’s financial situation stabilizes.

Deferment Eligibility and Categories

Federal student loans offer several deferment categories, each with distinct eligibility. In-School Deferment applies to borrowers enrolled at least half-time, continuing for six months after graduation, withdrawal, or dropping below half-time. If not automatic, contact your school or submit a form to your loan servicer.

Unemployment Deferment is for those who are out of work. To qualify, a borrower must be receiving unemployment benefits or actively seeking full-time employment but unable to find it. This deferment can be granted for up to three years, though borrowers may need to reapply every six months.

Economic Hardship Deferment assists borrowers with financial difficulties, including those receiving federal or state public assistance (e.g., Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI)). It also applies if full-time income (at least 30 hours per week) is below specific thresholds, such as 150% of the federal poverty guideline or the federal minimum wage. This deferment is available for up to three years.

Military Service Deferment is for borrowers serving on active duty in the U.S. Armed Forces during a war, military operation, or national emergency. This deferment covers the entire period of active duty service and extends for 13 months following the completion of service or until re-enrollment in school, whichever is earlier.

Graduate Fellowship Deferment is for students in an approved graduate fellowship program that provides financial support for full-time study and research. This requires certification from an authorized official of the fellowship program confirming acceptance and anticipated completion.

Rehabilitation Training Deferment is for borrowers in an approved rehabilitation training program, which can include vocational, drug abuse, mental health, or alcohol abuse treatment. Eligibility requires participation in such a program.

Required Information and Documentation

Before requesting deferment, gather essential personal and loan information, including full name, Social Security number, contact details, and federal student loan account numbers.

Required documentation varies by deferment type. For In-School Deferment, verification of at least half-time enrollment is needed. If not automatic, your school may report enrollment, or you can submit a certified form.

Unemployment Deferment requires proof of unemployment benefits or active job searching (e.g., job search log). Economic Hardship Deferment requires proof of public assistance (e.g., TANF, SSI) or income documentation (e.g., pay stubs, tax return) showing income below federal poverty guidelines.

Military Service Deferment necessitates official military orders or a statement from a commanding officer certifying active duty status. Graduate Fellowship Deferment applications require a statement from an authorized official of the fellowship program verifying acceptance, full-time study, and the anticipated completion date.

Official deferment forms are on the Federal Student Aid website or your loan servicer’s site. Select the correct form and fill all fields accurately. Missing or incorrect details can cause delays or rejection.

Submitting Your Deferment Request

With all necessary information and completed forms ready, submit the deferment request to your loan servicer. Direct action is often required.

Submit forms and documentation via mail or your loan servicer’s online portal. Online submission is faster, providing immediate confirmation. For mailed submissions, use a service with tracking and delivery confirmation.

Retain copies of all submitted documents, including the form, supporting documentation, and proof of submission (e.g., tracking numbers, online confirmations). This record serves as proof and can be referenced if issues arise. Continue payments until approval to avoid delinquency.

Implications of Deferment

An approved deferment provides a temporary pause in student loan payments. Understand the financial implications during and after this period.

Interest accrues on the loan. For subsidized federal loans, such as Direct Subsidized Loans and Perkins Loans, the federal government pays the interest that accrues during deferment, meaning the loan balance will not increase.

However, for unsubsidized federal loans, including Direct Unsubsidized Loans and Direct PLUS Loans, interest continues to accrue during the deferment period. If this accrued interest is not paid by the borrower, it will be capitalized, or added to the principal balance, once the deferment ends. This increases the total amount owed, which means future monthly payments may be higher, and the overall cost of the loan over its lifetime will increase.

Deferment can also affect the overall loan term. While payments are paused, the repayment period is extended by the length of the deferment, meaning it will take longer to pay off the loan. Borrowers should be aware of the deferment end date and prepare for repayment to resume. Loan servicers notify borrowers before payments restart, but it is the borrower’s responsibility to monitor their loan status.

Maintaining updated contact information with your loan servicer ensures you receive all communications regarding your deferment status and repayment schedule. Proactively monitoring your loan account online can also help you stay informed and prepare for the resumption of payments.