Postponing Payments

Postpone or Reduce Student Loan Payments

Having problems repaying your student loans? You have options, including provisions for postponing or reducing your payment:

Deferment

A deferment is a period of time during which you are not required to make payments toward your loan principal.

For Direct Subsidized Loans and Subsidized Federal Stafford Loans, the federal government pays the interest during a deferment. For other loans, you are responsible for the interest, though you can choose to pay it later:

• If you don’t pay the accruing interest, your loan holder will add to the principal amount of your loan, which increases the amount you have to repay.
• If you pay the interest as it accumulates, you'll repay less over the life of the loan.

Deferment Program Charts

Your eligibility for deferments depends on the loan type and when you received your oldest outstanding loan of that type. Select from the charts below to see the types of deferments that are available.

Direct Subsidized or Unsubsidized, Federal Stafford (subsidized or unsubsidized), Direct PLUS, Federal PLUS, SLS (Supplemental Loan for Students), Direct Consolidation, and Federal Consolidation Loans:

• Disbursed on or after July 1, 1993
• Disbursed from July 1, 1987 to June 30, 1993
• Disbursed prior to July 1, 1987

Federal Perkins Loans:

• Disbursed on or after July 1, 1993
• Disbursed prior to July 1, 1993

Some deferments have maximum time limits. If you have used up the maximum amount of time for a deferment with a limit, you are no longer eligible for additional deferments of that type.

Keep making payments on your loan until you receive notice that the deferment has been granted. Keep copies of all forms and correspondence relating to the deferment.

Forbearance

Forbearance is a way to temporarily lower or postpone your federal student loan payments. Your loan holder may grant forbearance if you are willing but temporarily unable to make full or partial payments and do not qualify for a deferment (the preferred option).

You are responsible for interest during forbearance, though your loan holder might allow you to pay it later:

• If you don’t pay the accruing interest, your loan holder will add it to the principal amount of your loan, which increases the amount you have to repay.
• If you pay the interest as it accumulates, you'll repay less over the life of the loan.

Most forbearance is discretionary - it is completely up to your loan holder to grant one. Under certain provisions, loan holders are required to grant a mandatory forbearance. Read your Master Promissory Note or loan application to learn more about these provisions.

When Deferment or Forbearance Periods End

Question:   My deferment or forbearance is ending soon. When will my loan be returned to a repayment status?

Answer:  Generally, the first payment after a deferment or forbearance will be due no later then 60 days after the date your deferment or forbearance ends. You will receive notification from your loan holder.

Question:  Am I able to extend my deferment or forbearance?

Answer:  Deferments and forbearances have maximum eligibility time limits. Please review the deferment and forbearance charts listed above for more information. Also, contact your loan holder and they will be able to explain your options.

Question:  What if I don't know the name of my loan holder?

Answer:  You may review your federal student loan history at www.nslds.ed.gov. NSLDS will provide you with the type and amount of the loans you have received as well as the name and contact information of your loan holder(s).

Question:  If I know the name of my loan holder, do I have to get their contact information from NSLDS?

Answer:  If you know the name of your loan holder, you may be able to locate their contact information here.

Question:  What are my options if I have exhausted my eligibility for a deferment or forbearance?

Answer:  If you have exhausted your eligibility for a deferment or forbearance, you may qualify for a different repayment plan.

Question:  I think my deferment or forbearance is ending soon, but I have not received any information from my loan holder. What should I do?

Answer:  You need to contact your loan holder immediately. If you have changed your address and did not inform your loan holder, that may be the reason you have not received any notification.

Get other tips for managing your student loan debt.