- Intro to student loan repayment options video
- Repaying student loans on a 10-year plan video
- Income-based student loan repayment plans video
- Delaying student loan repayment with deferment or forbearance video
- Consolidating student loans video
- Student loan deferment infographic
- KEY TAKEAWAYS
Student loan deferment
Student loan deferment
How it works, and how it can give you repayment flexibility
What is student loan deferment?
Loan deferment puts the loan on hold while you get your finances in order.
Deferment provides flexibility by temporarily suspending your obligation to repay your student loans if you have a short-term financial difficulty—for example, if you lose your job or take medical or temporary unpaid leave.
Are you eligible for deferment?
About 44% of student loans are in deferment.
Eligibility depends on the kind of loan you have and your circumstances.
Some reasons you may be able to defer federal loans:
• Income below minimum wage
• Returning to school
Depending on your reason for deferment, your loans may be deferred for up to three years.
Contact your lender to see if your situation applies.
How can you apply for deferment?
Private loan deferment
Terms for deferment of private loans vary by lender. Your lender will have more information about how to defer your loan.
Private loan deferrals tend to last one year or less.
Federal loan deferment
Applications for federal loan deferrals are available through your loan servicer.
You must provide proof of need, such as information about your income or medical condition.
Perkins Loans require you to contact your lender—typically your college or university—to defer.
Get to know your loans
Familiarize yourself with the details of your student loans—whether they’re subsidized federal loans or unsubsidized federal or private loans—to manage your student loan more effectively. Visit studentaid.ed.gov for information on your federal loans. Your school can help you contact any private lenders.
Does interest accrue while a loan is in deferment?
Unsubsidized loans, which account for nearly three-quarters of student loan dollars, accrue interest in deferment.
Nearly 75% of student loan dollars accrue interest.
If your loan is a subsidized federal loan, the government pays any interest that accrues.
About 25% of student loans are subsidized federal loans.
The value of paying while in deferment
Putting even a little money toward your loans while they’re in deferment can minimize the financial impact of deferment—especially if you can pay some of the interest on your unsubsidized loans. Any loan payments you make while in deferment will not end your deferment period.
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