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Deferments

Borrowers who run into difficulty making their student loan payments have some options available to them, including deferments. A deferment is a period of time during repayment in which the borrower, upon meeting certain conditions, is not required to make payments of loan principal.

  • Borrowers must apply to their loan servicer for deferments - they are not granted automatically.
  • Borrowers must meet certain criteria established by the federal government to obtain deferments. The most common deferments are:
    • Enrollment in school
    • Student in a graduate fellowship program
    • Rehabilitation training program for disabled individuals
    • Unemployment
    • Economic hardship
  • Depending on the type of loan - subsidized or unsubsidized - the government will pay the interest that accrues during the deferment period.