Deferment & Forbearance

Deferment


An advantage of borrowing Direct Loan program is the option you have to postpone repayment for a period of time under certain conditions such as:
    • Enrolled at least half-time at an eligible school
    • Unemployment
    • Extreme Economic Hardship
    • Active Military Duty

Deferment forms can be found the US Department of Education Federal Aid website (http://www.dl.ed.gov). You may need to complete and submit different deferment forms for different types of loans.

You should always continue making loan payments until you have been notified in writing that the deferment is granted. Keep copies of all forms and correspondence related to your deferment.

Forbearance


If you find yourself in temporary financial difficulty and no deferment option applies to you, you can request to postpone payments with a forbearance from your Servicer. Forbearance is granted at the Servicer's discretion and allows you to have months added to the term of your loan, temporarily reduce the amount of your monthly payment or temporarily suspend monthly payments.

Note that interest continues to accrue on your loan during a forbearance. That interest must be repaid, which can result in higher monthly payments once the forbearance has ended. The US Government does not pay the interest on subsidized loans while your loans are in forbearance. To apply for forbearance contact your Servicer.