Postponing Payments
Deferment
A deferment is a period of time during repayment in which the borrower, upon
meeting certain conditions, is not required to make loan payments of loan
principal.
For subsidized loans, the Federal government pays the interest
during a deferment. For other loans, the interest accrues and is capitalized and
the borrower is responsible for paying the interest.
SLGFA provides
deferment forms. If you are uncertain about which form
to use, see the
Deferment Eligibility Chart or use the
Deferment
Navigator.
Deferment eligibility depends on the following factors:
- the date on which you received your first Federal Family
Education Loan (FFEL);
- the type of loan; and
- whether you meet the specific criteria outlined for the
deferment.
Keep making payments on your loan until you receive notice
that the deferment has been granted. Some deferments have maximum time limits.
If you have used up the maximum amount of time for a deferment with a limit, you
are no longer eligible for additional deferments of that type.
Keep copies of all forms and correspondence relating to the
deferment.
Forbearance
A forbearance is the temporary postponement of payments for up to 6 months due
to financial difficulties. If interest is not paid during the forbearance, it
will accrue and be capitalized to your balance at the end of the forbearance.
Contact your
lender or servicer for information on obtaining a
forbearance.
Forbearance may be granted if you are:
- unable to pay due to poor health or other unforeseen
personal problems;
- serving in a medical or dental internship or residence;
- serving in a position under the National Community
Service Trust Act of 1993; or
- obligated to make payments on certain Federal student
loans that are equal to or greater than 20 percent of your monthly gross
income.