Postpone Your Payments

If you have reviewed all of your repayment plan options but are still unable to make your monthly student loan payments, you have other choices. You may be able to postpone your payments for a period of time by requesting a loan deferment or forbearance from your lender.

Deferment
A deferment is a way to temporarily postpone your student loan payments in certain situations such as reenrollment in school, unemployment, or economic hardship. If you are approved for a deferment, your loan principal will be deferred. Unless the loan is subsidized (such as a Perkins or Subsidized Stafford loan), interest will still accrue during the deferment period. You must meet specific criteria as set by the Federal government to qualify for a deferment. For deferment criteria visit the Federal Student Aid website.

Forbearance
Forbearance is another way to postpone your loan payments. If you do not qualify for a deferment, you may qualify for a forbearance which has less qualifications. You must contact your lender to request a forbearance. If you are approved for a forbearance, only your loan principal will be deferred. The interest on your loans will still accrue and you are responsible to pay it. You can pay the interest monthly or have it added to the loan balance when the forbearance period ends. There are some cases in which a forbearance is mandatory and must be granted. For example, mandatory forbearance must be granted if you:

• Are in a medical or dental internship or residency
• Have student loan payments that are 20% or more of your monthly income
• Have payments being made for you by the Department of Defense

Remember: You should continue making your loan payments until you are notified your deferment or forbearance request has been granted.