Deferments
A deferment is a temporary way to delay making payments as a result of a specific situation. During a deferment, interest will not accrue on a subsidized loan. There are several types of deferments including Economic Hardship, in school, unemployment and rehabilitation training for the disabled. Deferments are not automatically granted. Contact your lender for proper policies and procedures.
Economic Hardship is the most common type of Deferment. You are eligible if you are receiving public assistance; have a high debt burden or are unemployed. You may also qualify if you have a low monthly income.
In-School: You can also defer your loan if you are enrolled at least half time as a student at a Student Financial Aid-eligible school or you are enrolled full time at a school run by the federal government such as the military academies.
If you received some or all of your loans before July 1993, you may qualify for a deferment if you are temporarily totally disabled or if you’ve engaged in certain public service activities such as service in the Armed Forces, the Peace Corp or as a teacher in shortage areas. You can also defer payment if you are temporarily disabled or returning to the workforce after having a child.
