Student loan deferment can be a lifesaver for those struggling to make payments. You can defer your loans for up to three years.
To be eligible, you'll need to meet certain requirements, such as being enrolled in school at least half-time. This can be a great option if you're going back to school or need more time to get your finances in order.
The application process typically takes a few weeks to a few months to process. You can apply for deferment through the Federal Student Aid website or by contacting your loan servicer directly.
Curious to learn more? Check out: Does Student Loan Interest Accrue While in School
Types of Deferment
There are several types of deferment that can help you temporarily stop making payments on your student loans. One type is economic hardship deferment, which can be granted if you're experiencing financial difficulties due to unemployment, disability, or other factors.
This type of deferment can last up to three years and is available to borrowers who have a high level of debt compared to their income. For example, if you have a debt-to-income ratio of 50% or higher, you may be eligible.
For more insights, see: Amount of Student Loan Debt
Another type is military deferment, which is available to active-duty military personnel, veterans, and their spouses. This type of deferment can be granted for up to three years and is designed to help military personnel focus on their service without worrying about loan payments.
In some cases, deferment can also be granted for students who are enrolled in an internship or residency program. This type of deferment is usually only available to students who are pursuing a degree in a field that requires clinical training.
Borrowers who are enrolled in a graduate fellowship program may also be eligible for deferment. This type of deferment is usually only available to students who are pursuing a degree in a field that requires advanced training.
Frequently Asked Questions
How do you qualify for student loan deferment?
To qualify for student loan deferment, you typically need to meet specific eligibility requirements and provide documentation to your student loan servicer. Automatic deferments may be available for certain situations, such as being enrolled in school at least half-time.
Is student loan deferment extended?
No, student loan deferment is not extended. Student loan payments and interest will resume on September 1, 2023, with payments due in October.
Is it better to defer or forbearance?
If you want to minimize interest accumulation, consider deferring your federal student loan payments. However, if you're unsure about your payment schedule, forbearance might be a more flexible option.
Where to submit an in-school deferment request?
Submit an in-school deferment request to your school for certification, then update your enrollment information through StudentAid.gov. Your school will guide you through the certification process.
Sources
- https://www.consumerfinance.gov/ask-cfpb/what-is-student-loan-deferment-en-629/
- https://www.salliemae.com/student-loans/manage-your-private-student-loan/get-help-with-special-circumstance/deferring-payments-for-school-internships/
- https://www.cnm.edu/depts/financial-aid/loans/loan-deferment-and-default-status
- https://valenciacollege.edu/finaid/default-prevention/deferment-and-forbearance.php
- https://education.jhu.edu/current-students/academic-support-registration/transcripts-records/loan-deferment-requests/
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