Deferment and Forbearance
In certain circumstances, you may be allowed to postpone your loan repayment for a period of time. This is known as student loan deferment and student loan forbearance.
What is deferment?
A deferment is a period during which no payments are required and interest does not accrue on your loan (except for an unsubsidized Stafford Loan - in this case, you must pay interest).
How do I qualify for a deferment?
The most common conditions for loan deferment include:
- At least half-time enrollment in school
- Inability to find a full-time job or other economic hardship (for up to three years)
What is forbearance?
If you cannot pay your loan bills due to temporary circumstances, but aren't eligible for a deferment, your lender may grant you forbearance. Forbearance means that your lender agrees to temporarily reduce or postpone your student loan payments. However, you still have to pay the interest that continues to accrue on the loan. In general, you can get forbearance for up to one year at a time and for a maximum of three years. You will have to prove to your lender that you should be granted forbearance.
Applying for Deferment or Forbearance
To receive deferment or forbearance, you must first file an application. Contact your school, lender, bank or agency holding your loan to get started.
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Now that you've read Student Loan Deferment | Learn About Student Loan Forbearance, learn about canceling loans in the next section, About Federal Student Loan Forgiveness.