How to Apply for Student Loan Deferment
Student loan payments can feel overwhelming, whether you’ve recently graduated and searching for a job or a parent cosigning a loan. Keeping up with monthly payments, not to mention the latest borrower news, can feel like a constant challenge.
If you’re facing economic hardship, medical issues, or other challenges, student loan deferment may provide temporary relief by pausing your federal loan payments. However, understanding how deferment works and whether it’s the right choice for you is essential. Please note: private loans may also offer options to pause loan repayment. Be sure to speak to your private loan servicer for more information regarding available options.
This guide will walk you through how to apply for student loan deferment and what to consider before making a decision.
What Is Student Loan Deferment?
Student loan deferment is a temporary pause on loan repayments. During this period, you don’t need to make payments on your federal student loan. Depending on the loan type, interest may be paid by the government during the deferment.
While deferment can provide some relief, it’s essential to understand that it doesn’t work for everyone. There can also be long-term consequences, such as accruing additional interest and capitalization of that accrued interest.
Can You Defer Student Loans?
Yes, it’s possible to defer federal student loans if you meet specific eligibility requirements. Whether you’re facing economic difficulties, pursuing further education, or dealing with medical issues, deferment can provide financial relief during difficult times.
How to Defer Student Loans: Eligibility Requirements
Several circumstances may make you eligible for a deferment. Here’s a look at some of the different deferment options available for federal student and parent loans:
Cancer Treatment Deferment: If you’re undergoing cancer treatment, you may qualify for deferment during treatment and up to six months afterward.
Economic Hardship Deferment: Borrowers facing financial difficulties, like earning below 150% of the poverty guideline or receiving means-tested benefits, may qualify for deferment for up to three years.
Graduate Fellowship Deferment: Graduate students in approved fellowship programs may qualify for deferment while pursuing their studies.
In-School Deferment: If you’re enrolled at least half-time in an eligible school, your federal student loan servicer will grant an in-school deferment.
Military Service and Post-Active-Duty Student Deferment: Active-duty military members may qualify for deferment during their service, and those returning from duty may receive an additional 13-month deferment.
Parent PLUS Borrower Deferment: Parents who took out a Parent PLUS loan can request deferment while their child is enrolled at least half-time and up to six months afterward.
Rehabilitation Training Deferment: Borrowers in approved rehabilitation programs for drug, mental health, or alcohol issues may qualify.
Unemployment Deferment: Those receiving unemployment benefits or actively seeking full-time employment may be eligible for up to three years of deferment. Contact your loan servicer to learn how to get student loans deferred under these circumstances.
How Do I Apply for Deferment on My Federal Student Loans?
Most federal student loan deferments aren’t automatic. Instead, you must submit a request to your loan servicer and provide supporting documentation to show that you meet the eligibility requirements.
Here’s the general four-step process on how to apply for student loan deferment:
Identify Your Eligibility Criteria
Before applying, check if you meet the requirements for any of the deferment options discussed above.
Gather the Necessary Documents
Depending on the type of deferment you’re applying for, you’ll need to provide relevant supporting documentation.
Complete the Appropriate Deferment Request Form
Visit the Federal Student Aid website or your loan servicer’s website to select the form corresponding to your deferment type. Be sure to carefully fill out all required information, as missing or incorrect details can delay the processing of your request or lead to rejection.
Submit the Deferment Request
Send your completed form along with any required documentation to your loan servicer. They may ask for additional information, so stay in touch.
Now That You Know How to Defer Student Loans, What’s Next?
Once you’ve submitted your deferment application, continue making payments as scheduled until you receive confirmation that your deferment has been approved. Failing to do so could cause your loan to become delinquent, harming your credit score.
If your deferment is approved, the terms will vary. In some cases, interest is covered by the government and will not accrue. However, interest will continue to accrue in other cases, meaning you’ll still be responsible for paying it even while your loan payments are on hold. Any interest that accrues during deferment will be added to your loan balance, which may increase the total amount you owe. This is called capitalization.
Pause Your Payments, Not Your Progress
Learning how to defer student loans can offer some relief by pausing your payments, but it is essential to understand the terms and how they may affect your loan balance.
Have a federal or private student or parent loan serviced by Higher Education Servicing Corporation (HESC)? We are here to help you navigate the deferment process. For federal loans, please use our deferment forms to request assistance or update your account. If you have a private loan with us, you can easily manage your loan and access the necessary forms through your online account.
Apply now or manage your loan to move forward with your student loan journey. Whatever your situation, we’re here to support you every step of the way.