How to Delay Your Student Loan Payments

Understanding options to temporarily delay federal student loan payments can provide necessary relief during financial challenges. Federal student loan programs offer mechanisms to help borrowers manage obligations during hardship. These options allow a temporary pause in payments, preventing delinquency or default and providing an opportunity to stabilize personal finances. Navigating these processes involves understanding the available choices and the steps required to access them.

Understanding Federal Student Loan Deferment

Federal student loan deferment allows borrowers to temporarily postpone payments. For certain loan types, interest does not accrue during this period. This temporary pause is available for specific circumstances. Eligibility criteria for deferment are specific to each type, and borrowers must meet these conditions to qualify.

In-School Deferment is automatically applied if a borrower is enrolled at least half-time at an eligible educational institution. Interest generally does not accrue on Direct Subsidized Loans or Federal Perkins Loans during this period. For Direct PLUS Loans, an additional six months of deferment may be granted after enrollment ceases.

Unemployment Deferment is available for up to three years if a borrower is actively seeking but unable to find full-time employment. To qualify, individuals must be receiving unemployment benefits or be registered with an employment agency and diligently searching for work. Documentation, such as proof of unemployment benefits or job search attempts, is required.

Economic Hardship Deferment provides relief for up to three years, granted in 12-month increments. Eligibility requires receiving means-tested federal or state public assistance, such as Supplemental Security Income. Alternatively, working full-time with a monthly income below 150% of the poverty guideline for one’s family size, or serving in the Peace Corps, can also qualify.

Other deferment types include Military Service Deferment for active duty service during a war or national emergency, Graduate Fellowship Deferment for those in approved graduate fellowship programs, and Cancer Treatment Deferment during treatment and for six months afterward. For most deferments, interest on Direct Unsubsidized Loans, Direct PLUS Loans, and Federal Family Education Loan (FFEL) PLUS Loans will continue to accrue.

Understanding Federal Student Loan Forbearance

Federal student loan forbearance provides a way to temporarily stop or reduce payments. Unlike some deferments, interest always accrues on all loan types during this period. This means the total amount repaid will increase, as unpaid interest may capitalize, or be added to the principal balance, at the end of the forbearance. Forbearance periods are typically granted for up to 12 months.

General Forbearance, also known as discretionary forbearance, is granted at the loan servicer’s discretion for financial difficulties, medical expenses, or employment changes. While servicers are not obligated to grant this type, they often do for acceptable reasons. A cumulative limit of three years applies to general forbearances across all federal loan programs.

Mandatory Forbearance must be granted by the loan servicer if a borrower meets specific eligibility criteria. One criterion is when the total amount owed each month for federal student loans equals or exceeds 20% of the borrower’s total monthly gross income. This type of forbearance can be granted for up to three years.

Other situations requiring mandatory forbearance include serving in an AmeriCorps position, qualifying for partial repayment through the U.S. Department of Defense Student Loan Repayment Program, or participating in a medical or dental internship or residency program. National Guard members activated by a governor may also qualify if not eligible for a military deferment. Specific documentation is required to confirm eligibility for each type.

Administrative forbearance may be granted by servicers in specific situations, such as during natural disasters or while processing other requests. Borrowers should carefully consider the impact of accumulating interest when choosing forbearance.

Gathering Information and Completing Forms

Preparing to delay student loan payments involves gathering specific personal and financial information. First, identify your federal student loan servicer, the entity that manages your loan account and processes requests. You can find your servicer by logging into your StudentAid.gov account dashboard and locating the “My Loan Servicers” section, or by calling the Federal Student Aid Information Center.

Once the servicer is identified, deferment or forbearance application forms can be found on their website or directly on StudentAid.gov. These forms require detailed information to assess eligibility for the requested payment pause. Provide personal details such as your Social Security Number, date of birth, and current contact information.

Specific loan account numbers, along with desired start and end dates for the payment delay, will also be requested. Depending on the type of deferment or forbearance, you may need to provide proof of income (e.g., recent pay stubs or tax returns) or documentation of unemployment benefits. For in-school deferments, enrollment verification from your educational institution is necessary.

Accurately complete all fields on the form and attach any required supporting documentation. Examples include letters from employers, medical documentation, or official statements from public assistance programs. Providing complete and accurate information helps avoid processing delays.

Submitting Your Request and Next Steps

After completing the application form and gathering all necessary supporting documents, submit your request to your loan servicer. Most servicers offer several submission methods, including secure online portals, mail, or fax. Using an online portal is often the quickest, providing immediate confirmation of receipt.

If submitting by mail, consider using certified mail with a return receipt to ensure proof of delivery. Regardless of the method, keep a copy of the completed form and all submitted documentation for your records. This can be valuable if questions arise during processing.

Upon submission, you should receive confirmation that your application has been received. Processing times vary but typically range from 15 to 30 business days. Continue making regularly scheduled payments until you receive official notification that your deferment or forbearance request has been approved. Failing to do so could result in late fees or negative impacts on your credit history.

Your loan servicer will notify you of the decision regarding your request. If approved, the notification will outline the terms of your payment pause, including effective dates and any changes to your payment schedule. If the request is denied, the servicer will provide the reasons for the denial. You may then have options to appeal the decision or explore alternative repayment solutions, such as income-driven repayment plans.