Deferments

Deferment is a period when payment on the principal of a loan is postponed. For subsidized Stafford loans and all or a portion of a consolidation loan, interest subsidy payments are made by the federal government. Anytime after the grace period--if there is one--has expired, borrowers are entitled to a deferment if they meet the regulatory requirements. Borrowers should continue making payments on the loan until notification of the deferment being approved is received. A borrower's eligibility for a deferment depends on when the loan was made, as well as the individual deferment's requirements. Eligibility for a deferment does not mean you are required to take it. You may choose to continue making payments on your student loan.

All loans have some deferment provisions, but the interest will continue to accrue while the loan is deferred on PLUS, SLS and some consolidation loans, and will be capitalized at the end of the deferment period if not paid during the deferment. The borrower may choose to make payments while the loan is deferred in order to not have it capitalized.

Our online calculator can help you estimate the cost of an unsubsidized deferment or forbearance.