How to Put Your Student Loans in Deferment

Student loan deferment offers a temporary pause in required loan payments under specific circumstances. This option allows borrowers to suspend their monthly obligations without facing the negative consequences of delinquency or default. Deferment is distinct from forbearance, as interest may not accrue on certain loan types during a deferment period, providing a potential financial advantage. It serves as a financial relief mechanism during periods of hardship or specific life events.

Eligibility Criteria for Deferment

Several types of deferment are available for federal student loans, each with specific conditions a borrower must meet. One common type is in-school deferment, which applies if you are enrolled at least half-time at an eligible college or vocational school. For many federal loans, this deferment is often automatic, but you may need to contact your loan servicer if it is not applied.

Unemployment deferment is another option, available if you are receiving unemployment benefits or are actively seeking, but unable to find, full-time employment. This deferment is granted for up to three years. Economic hardship deferment is also available for up to three years if you are experiencing financial challenges, such as receiving means-tested government benefits or having income below 150% of the federal poverty guideline for your family size.

Military service deferment is provided for active-duty service members during a war, military operation, or national emergency, and may extend after service ends. Other deferment types include graduate fellowship deferment for those in approved graduate fellowship programs, and rehabilitation training deferment for participation in approved rehabilitation training programs. Parent PLUS borrowers also qualify for deferment while the student is enrolled at least half-time, and for an additional six months after enrollment ceases.

Gathering Required Information and Documentation

Before applying for student loan deferment, gather all necessary information and supporting documentation. This preparation helps ensure your application is complete and accurate, preventing delays or rejection. You will need personal identification details, your loan servicer’s information, and specifics about your student loans, including account numbers and current balances.

For each specific deferment type, particular documents are required to prove eligibility. In-school deferment requires enrollment verification from your educational institution. Unemployment deferment requires proof of unemployment benefits or documentation of job search efforts. For economic hardship, you need income statements, tax returns, or evidence of receiving government assistance.

Official deferment application forms are available on your loan servicer’s website or through the Federal Student Aid website. Review these forms to understand all informational fields. Ensure that all data entered, such as dates, income figures, and personal details, matches your gathered documentation to prevent discrepancies.

Submitting Your Deferment Application

Once you have completed the deferment application form and collected all supporting documents, submit them to your loan servicer. Continue making your regular loan payments until you receive confirmation that your deferment request has been approved. Failing to do so could lead to your account becoming delinquent.

Many loan servicers offer online submission through their dedicated portals. This involves uploading the completed form and any required documentation directly to your account. Online submissions are processed more quickly, with some deferments processed within 24 hours.

Alternatively, you can submit your application via mail, which requires sending the completed form and documents to a specific mailing address provided by your servicer. Sending documents via certified mail with a return receipt provides proof of delivery. Some servicers also offer a fax option for submission.

Managing Your Deferment

After submitting your deferment application, tracking its status is the next step. You can monitor the progress of your application through your loan servicer’s online portal or by contacting them directly. Most servicers will notify you by mail or electronically once a decision is made.

If your deferment is approved, understand its terms, especially concerning interest accrual. For federal subsidized loans, the government pays the interest during deferment, meaning your loan balance will not increase. However, for unsubsidized federal loans and PLUS loans, interest continues to accrue and will be added to your principal balance if not paid before the deferment ends.

Borrowers should keep their contact information updated with their loan servicer throughout the deferment period. Deferment periods are temporary, lasting up to three years for many types, and payments will resume once the period concludes. If your application is denied, contact your loan servicer to understand the reason, due to missing information or incorrect documentation.