Student Loan Deferment: The Complete Guide Of What You Need To Know

Repaying student loans is an essential component of your financial future. We are all well aware of the growing animosity toward student loans, but the fact remains that they may be a necessary evil for many people. That's why we created the free Definitive Guide to Student Loan Debt.

It's important to also remember that, in moderation, student loans can provide you valuable assistance, and there are ways to manage their repayment to maximize the benefits that are available to you.

It's no surprise that student loans become a burden in repayment. They are lingering monthly payments that seemingly goes toward nothing. Because of this, they are often one of the first payments to be missed, or to let slide into delinquency. Even though student loan programs have generous repayment options, you can still default on them, and student loan lenders do report to credit bureaus. Student loans can hurt your credit score just like any other type of loan!

If you find yourself in a situation where you are unable to make your monthly payments on time, then you should immediately contact your loan servicer. This will allow you to explore all of the options available to you, and ensure that you choose the option that is best for you.

The student loan deferments and forbearances available to you also depends on the type of loan that you have. Here are your options for the most common student loan types.

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In-School Deferments

Economic Hardship Deferment

Economic Hardship Forbearance

Military Service Deferment

Full List Of Deferments

FFEL/Direct Stafford/PLUS loans

You will need to contact your loan servicer to request your deferment or forbearance options for these loans. If you are in repayment, you should already be receiving monthly statements from your servicer, but if you are not sure who your servicer is, then you can to find out on MyStudentAid. This database is also a great resource for keeping track of all of your student loans and managing your repayment plan.

When your loans are disbursed, they are automatically placed into an in-school deferment period. This means that as long as you are enrolled at least half-time in school, your loan payments will be postponed. Once you graduate or separate from your school, you will have a six-month grace period, and then your repayment will begin.

At this point, you can explore a few options of further postponing your payments.

Here's a list of the most common types of deferment.

In-School Deferments

If you graduate with a bachelor's degree and plan to continue on toward a master's or other professional degree, then you can apply for an additional in-school deferment on your student loan.

Simply contact the registrar's office for a verification of enrollment, and submit this to your lender. If you are already repaying your loans and decide to go back to school, you can apply using the same process.

Economic Hardship Deferment

If you are experiencing economic hardship and are unable to repay your student loans then you can apply for a deferment based on that situation. You may be eligible for up to a three-year deferment if your economic situation does not improve. In this economic climate, this is something to consider.

It is important to note, however, that if you have a subsidized Stafford Loan then your interest will also be deferred during your deferment. If you have an unsubsidized Stafford Loan or a PLUS loan, then your interest will continue to accrue during your deferment, and it will be added, or capitalized, to your total loan amount when you begin repayment again.

A deferment also must meet strict guidelines set forth by the Department of Education. They are the official governing body on student loan deferments.

Economic Hardship Forbearance

If you are unable to qualify for a student loan deferment based on the federal guidelines, then your lender may be willing to grant you a forbearance, or a temporary stop in your monthly payments. This can only last up to 12 months, and the same rules apply to paying the interest as with a deferment.

Military Service Deferment

To be honest, I wish that all active duty soldiers serving more than five years would have their student loans forgiven. The military has a generous tuition assistance program, but I still wish they could do more. However, if you are active duty then you can apply for a deferment which will postpone your payments while you fulfill your military obligations.

Full List Of Deferments

Program Name	Time Limit	Restrictions
Action Programs Deferment	36 Months	Must be a full time paid volunteer in ACTION programs Must agree to serve at least one year Download the application here: Public Service Deferment Request
Armed Forces Deferment	36 Months	Must be on active duty in the armed forces of the United States (Army, Navy, Air Force, Marine Corps, or Coast Guard) If you are in the reserves, you may qualify if: You are serving full-time for at least a year or are serving under an order of national mobilization. You must submit a copy of your military orders to your loan holder Download the application here: Public Service Deferment Request
Cancer Treatment Deferment	During Treatment Plus 6 Months	You are eligible to receive a deferment on your student loan payments during your cancer treatment and 6 months after. You are initially allowed up to 1 year, but may provide a doctor's note if your treatment will exceed that period of time. Download the application here: Cancer Treatment Deferment Request
Economic Hardship Deferment	36 Months & Must Reapply Annually	You are receiving payment under a federal or state public assistance program, such as Temporary Assistance for Needy Families (TANF), Supplemental Social Security Income (SSI), Food Stamps, or state general public assistance You are working full-time and your total gross monthly income is less than or equal to the larger of the monthly federal minimum wage rate or 150% of the poverty guideline for your state. Find out if you qualify by using their calculator Download the application here: Economic Hardship Deferment Request
Graduate Fellowship Deferment Program	No Limit	You must enroll in a fellowship program that: provides sufficient financial support to allow for full-time study for at least 6 months, requires a statement of objectives, requires periodic reports or projects that measure the graduate fellow’s progress You must have a Bachelor’s degree conferred by an institution of higher education You must have been accepted into said fellowship program Download the application here: Education Related Deferment Request
In-School Deferment Program	No Limit	You must be enrolled in an eligible school at least half-time Download the application here: In-School Loan Deferment Request
Internship/Residency Deferment Program	No Limit	Your internship/residency must be a supervised training program Your internship/residency must lead to a degree or certificate You must at least hold a Bachelor’s Degree before acceptance into the program You must have a deferment form signed by an authorized official of the organization from which you are taking the program Download the application here: Education Related Deferment Request
Parental Leave Deferment	6 Months	Federal PLUS Loans are not eligible You must be pregnant, caring for a newborn child, or caring for a newly adopted child You must NOT be working full-time or attending school during the deferment period You must have been enrolled in school at least half-time during the six months prior to this deferment Download the application here: Parental Leave Deferment Request
Peace Corps Deferment	36 Months	You must agree to serve in the Peace Corps for at least one year You must have your deferment form signed by a Peace Corps official Download the application here: Public Service Deferment Request
Post-Active Duty Student Deferment	13 Months	Borrowers must have completed their active duty military service, and were called to active duty at the time of, or within 6 months of, attending school at least half time You are a member of the National Guard or Armed Forces Reserve, including a member who was in a retired status when activated Download the application here: Military Service Deferment Request
Military Service Deferment	No Limit	Serving on active duty during a war or other military operation, or national emergency; or performing qualifying National Guard duty during a war or other military operation, or national emergency. Your loans must be Stafford Loans, PLUS Loans, or Consolidation Loans You must provide your loan holder with a copy of your military orders Download the application here: Military Service Deferment Request
Tax Exempt Organization Volunteer Deferment	36 Months	You must be serving full-time in an organization that has a tax exemption under Section 501(c)(3) of the Internal Revenue Code of 1986 You must assist low income people and their communities in eliminating poverty and poverty-related human, social, and environmental conditions You must not earn more than the federal minimum wage; however, you may receive fringe benefits like others in the organization You must not engage in religious instruction, proselytizing, fund raising to support religious activities, or conduct worship services as part of your duties You must have agreed to serve in this organization for at least one year Download the application here: Public Service Deferment Request
Teacher Shortage Area Deferment	36 Months	Federal PLUS Loans are NOT eligible You must teach full-time in a public or non-profit private elementary or secondary school in a geographic region, grade level, academic, instructional, subject matter, or discipline classified shortage area, as defined by the U.S. Department of Education. Download the application here: Education Related Deferment Request
Temporary Total Disability Deferment	36 Months & Must Reapply Every 6 Months	You are, or your spouse or dependent, must be temporarily totally disabled You are unable to work and earn money or go to school for at least 60 days in order to recover from an injury or illness You are not requesting this deferment based on a condition that existed before you applied for your loan(s) You are not requesting this deferment based on an uncomplicated pregnancy (either your pregnancy, or your spouse's or dependent's uncomplicated pregnancy). If you are pregnant you may qualify for a Parental Leave Deferment You are requesting this deferment based on the disability of your spouse or dependent, and your spouse or dependent has an injury or illness that requires at least 90 days of continuous nursing or similar care from you, which prevents you from securing full-time employment of at least 30 hours per week in a position expected to last at least three months Download the application here: Temporary Total Disability Deferment
Unemployment Deferment	36 Months & Must Reapply Every 6 Months	You must be diligently seeking but unable to find full-time employment in any field or at any salary or responsibility level even if you are not eligible for unemployment benefits (or if your eligibility expired) You must be registered with a public or private employment agency if there is one within 50 miles of your permanent or temporary address. If you are requesting an extension of your current unemployment deferment, and you are not providing documentation of your eligibility for unemployment benefits, you must certify that you have made at least 6 diligent attempts to find employment on the most recent 6 months Download the application here: Unemployment Deferment Request
Working Mother Deferment	12 Months	Federal PLUS Loans are NOT eligible You entered or re-entered the workforce within one year preceding this deferment request You are working full time in a position earning no more than $1 per hour above the Federal minimum wage You are the mother of a preschool-age child who has not yet enrolled in the first grade or a higher grade in elementary school Download the application here: Parental Leave Deferment Request
PLUS Borrower with Dependent Student Deferment	No Limit	You are applying to receive a deferment based on your dependent student's full-time enrollment at an eligible school Download the application here: Parent PLUS Borrower Deferment Request

Perkins Loans

A Perkins Loan is also a federally subsidized student loan, but it is one that is issued by your school, and it is repaid directly to your school. Many schools use a third-party servicer to manage their repayment so you may actually send your monthly payments and deferment requests through that servicer.

The same deferments apply for Perkins Loans as they do for a Stafford Loan, except Perkins Loan deferment decisions can be made by either your school or their third-party servicer.

Private/Alternative Loans

There are less federal regulations surrounding private or alternative student loans, but the deferment process works the same. You will simply contact your lender for your private loans and request a deferment. Private loans do not have subsidized options, so you will always pay the interest, or have the interest capitalized, during a period of deferment.

Your private loan lender will be able to work with you on temporarily postponing your payments, and starting your student loan deferment to help you avoid late payments or a loan default.

Have you ever applied for a student loan deferment program?

Robert Farrington

Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.

He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.

He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.

The Complete and Easy Guide to Student Loan Deferment