Student Loan Deferment Demystified: Eligibility and Application Process

Student loan deferment is a temporary pause in your student loan payments, during which interest may not accrue on certain types of loans. It is a helpful option for borrowers who are facing financial hardship, are going back to school, or meet specific qualifying criteria. Here's an overview of what student loan deferment is, who qualifies, and how to get it:

What Is Student Loan Deferment?

Student loan deferment is a period during which your loan payments are temporarily postponed. While in deferment, you are not required to make payments, and in some cases, the government may cover the interest that accrues on certain types of loans. Deferment is typically granted for specific reasons, such as:

1. Economic hardship
2. Unemployment
3. Returning to school or enrolling in a graduate program
4. Active military duty
5. Certain types of public service
6. Disability
7. Parent PLUS loans while the student is in school or during the six months after the student graduates or leaves school

Who Qualifies for Student Loan Deferment?

Qualifications for student loan deferment vary depending on the type of loan and the specific reason for the deferment. In general, you may qualify for deferment if you meet any of the following criteria:

• You have federal loans, including Direct Subsidized Loans, Direct Unsubsidized Loans, and Perkins Loans.
• You are experiencing financial hardship, unemployment, or other economic difficulties.
• You are enrolled at least half-time in a qualified education program.
• You are serving on active duty in the U.S. military during a war, military operation, or national emergency.
• You are serving in the Peace Corps.
• You are engaged in certain types of public service work.
• You are undergoing rehabilitation training for a disability.
• You are the parent of a student, and the student is enrolled at least half-time in an eligible program.

How to Get Student Loan Deferment:

To request a student loan deferment, follow these steps:

1. Contact Your Loan Servicer: Reach out to your loan servicer to discuss your situation and inquire about the deferment options available to you.

2. Determine Your Eligibility: Work with your loan servicer to determine if you meet the qualifications for deferment. The specific requirements vary depending on the type of deferment you're seeking.

3. Complete the Deferment Request Form: Your loan servicer will provide you with the necessary deferment request form. This form will require you to provide information about your situation and, in some cases, documentation to support your request.

4. Submit the Form: Fill out the deferment request form, provide any required documentation, and submit it to your loan servicer. Ensure you keep copies for your records.

5. Continue Making Payments Until Approval: Continue making payments on your loans until you receive notification from your loan servicer that your deferment has been approved. If you stop making payments before your deferment is approved, you may risk going into delinquency or default.

6. Stay Informed: Be sure to stay in touch with your loan servicer and monitor your loan status while in deferment. You may need to reapply for deferment periodically, depending on the specific reason for your deferment.

Remember that deferment is a temporary solution, and interest may still accrue on some types of loans during this period. If you have subsidized federal loans, the government covers the interest during deferment. However, with unsubsidized federal loans and private loans, interest typically continues to accrue and may be capitalized (added to the principal) when the deferment ends.

Deferment is a useful option to provide temporary relief from student loan payments when you are experiencing financial difficulties or are pursuing additional education. It's essential to communicate with your loan servicer and follow the application process to ensure a successful deferment period.