👨🎓 Greetings, Fellow Students! Are You Struggling With Debt From Your Student Loans?
With the average student loan debt in the United States at $32,731, it’s not surprising that many graduates struggle to pay off their loans. Thankfully, there are options available for those who need to put their loans on hold temporarily. Known as “deferment,” this option allows borrowers to stop making payments on their loans without going into default. Deferment can be a valuable tool for borrowers who are experiencing financial hardship or who are returning to school. In this article, we’ll explore the different types of deferment and how you can take advantage of them.
📚 What Is Student Loan Deferment?
Deferment is a type of repayment plan that allows borrowers to temporarily stop making payments on their student loans. During a deferment period, interest may continue to accrue on the loan, but the borrower is not required to make payments. There are a number of situations in which a borrower may be eligible for a deferment:
Situation 1: Returning to School
If you are returning to school at least half-time, you may be eligible for a deferment. During the deferment period, you won’t need to make payments on your loans, and interest will not accrue. To be eligible for this type of deferment, you must be enrolled in an eligible program and meet certain other requirements.
Situation 2: Unemployment or Economic Hardship
If you are experiencing economic hardship or are unemployed, you may be eligible for a deferment. This type of deferment is available for up to three years, and interest will continue to accrue on your loans during this time. To qualify, you must be receiving public assistance or meet certain income requirements.
Situation 3: Active Duty Military Service
If you are serving on active duty in the military, you may be eligible for a deferment. During your deferment period, you won’t need to make payments on your loans, and interest will not accrue. To qualify, you must be serving in a war, military operation, or national emergency, or have been called to active duty in response to a war or military operation.
Situation 4: Peace Corps or AmeriCorps Service
If you are serving in the Peace Corps or AmeriCorps, you may be eligible for a deferment. During your deferment period, you won’t need to make payments on your loans, and interest will not accrue. To be eligible, you must be serving full-time in a program that is recognized by the Department of Education.
Situation 5: Rehabilitation Training or Disability
If you are enrolled in a rehabilitation training program for disabled individuals, or if you are experiencing a disability that makes it difficult to work, you may be eligible for a deferment. During this time, you won’t need to make payments on your loans, and interest may or may not accrue depending on the type of loan you have.
🗃️ Understanding Deferment Forms and Application Process
To apply for deferment, you will need to fill out the appropriate forms and submit them to your loan servicer. Your loan servicer is the company that handles your loan payments and customer service. Each deferment situation has its own set of eligibility requirements, so make sure you understand the requirements before you apply.
Here are some of the forms you may need to fill out:
Type of Deferment |
Form Name |
|---|---|
Returning to School |
In-School Deferment Request |
Unemployment or Economic Hardship |
Unemployment Deferment Request |
Active Duty Military Service |
Military Service and Post-Active Duty Student Deferment Request |
Peace Corps or AmeriCorps Service |
Peace Corps and AmeriCorps Deferment Request |
Rehabilitation Training or Disability |
General Forbearance Request |
❓ Frequently Asked Questions About Deferred Student Loan Options
Q1: Will interest continue to accrue during a deferment period?
A1: It depends on the type of loan you have. With subsidized loans, the government pays the interest that accrues during a deferment period. With unsubsidized loans, interest will continue to accrue during the deferment period.
Q2: How long can I defer my student loans?
A2: The length of time you can defer your loans depends on your individual situation and the type of deferment you are eligible for. Some deferments can last for up to three years, while others have no time limit.
Q3: Can I defer private student loans?
A3: Private student loans may offer deferment options, but they are not required to do so. Check with your loan servicer to see what options are available to you.
Q4: Can I apply for deferment after I have already defaulted on my loans?
A4: No. Deferment is only available to borrowers who are in good standing on their loans. If you are in default, you will need to explore other options, such as loan rehabilitation or consolidation.
Q5: What happens after my deferment period ends?
A5: After your deferment period ends, you will need to start making payments on your loans again. If you are still experiencing financial hardship, you may be eligible for other repayment options, such as income-driven repayment or forbearance.
Q6: Can I apply for deferment if I am already in forbearance?
A6: Yes. However, keep in mind that both deferment and forbearance can add to the total cost of your loan. If you are able to make payments, it’s usually best to do so to avoid accruing additional interest.
Q7: Can I defer my loans if I am enrolled in a certificate program?
A7: It depends on the type of certificate program you are enrolled in. To be eligible for deferment, your program must be recognized by the Department of Education as an eligible program. Check with your school and loan servicer to see if your certificate program qualifies.
Q8: Do I need to make payments on my loans during the deferment application process?
A8: You may need to make payments on your loans until your deferment is approved. Check with your loan servicer to see what your options are.
Q9: Can I make payments on my loans during a deferment period?
A9: Yes. You can make payments on your loans during a deferment period if you choose to. This may help reduce the total cost of your loan over time.
Q10: Are there any fees associated with deferment?
A10: No. There are no fees to apply for deferment, and there are no fees associated with being in deferment. However, keep in mind that interest may continue to accrue on your loans during this time, which can increase the total cost of your loan.
Q11: Can I defer my loans if I am in a grace period?
A11: No. Deferment is only available to borrowers who have already entered repayment on their loans.
Q12: Can I defer my loans if I am enrolled in a graduate program?
A12: Yes. If you are enrolled in an eligible graduate or professional program, you may be eligible for a deferment. Check with your school and loan servicer to see what options are available to you.
Q13: Can I defer my loans if I am enrolled in a non-degree program?
A13: It depends on the type of program you are enrolled in. To be eligible for deferment, your program must be recognized by the Department of Education as an eligible program. Check with your school and loan servicer to see if your non-degree program qualifies.
💼 Take Action: How to Apply for Deferment
If you think you may be eligible for deferment, the first step is to contact your loan servicer. They can provide you with the necessary forms and guide you through the application process. Keep in mind that you will need to provide documentation to support your eligibility for deferment.
If you are struggling with your student loan payments, deferment can be a valuable tool to help you get back on track. By taking advantage of deferment options, you can temporarily stop making payments on your loans without going into default. This can give you the breathing room you need to focus on your finances and get back on your feet.
📦 Closing or Disclaimer
Dealing with student loan debt can be overwhelming, but there are options available to help you manage it. Before making any decisions about how to handle your loans, it’s important to do your research and understand your rights and responsibilities as a borrower. This article is intended to provide general information about deferment options and should not be construed as legal or financial advice. If you have questions about your specific situation, it’s best to speak with a qualified professional.