How Do I Put My Student Loans In Deferment

If you’re a student, you likely have a lot of loans. And if you have a lot of loans, you probably have to make payments on them. But what happens when you temporarily can’t make those payments while you’re in school?

That’s where deferment comes in. Deferment allows you to temporarily put your student loans into a “holding pattern,” which means that your payments are put on hold while you’re in school or after graduation (depending on the type of deferment). You’ll still owe the money and be responsible for paying it back later, but for now, it’s just sitting there until you need it again.

How Do I Put My Student Loans In Deferment?

How Do I Put My Student Loans In Deferment

With deferment, you won’t have to make a payment. However, you probably won’t be making any progress toward forgiveness or paying back your loan. As an alternative, consider income-driven repayment.

If you’re having trouble repaying your loans due to circumstances that may continue for an extended period, or if you’re unsure when you’ll be able to afford to make your monthly loan payments again, a better option might be to consider changing to an income-driven repayment plan. Income-driven repayment plans base your monthly payments on your income and family size. In some cases, your payment could be as low as $0 per month. Income-driven plans can also provide loan forgiveness if your loan isn’t paid in full after 20 or 25 years.

Always contact your student loan servicer immediately if you’re having trouble making your student loan payments.

If you’re granted a deferment, you might still be responsible for paying the interest that accrues during the deferment period. The table below shows when you are responsible for paying the interest and when you are not responsible based on loan type.

Loan Types Where You Are Generally NOT Responsible for Paying the Interest That Accrues	Loan Types Where You Are Responsible for Paying the Interest That Accrues
Direct Subsidized Loans	Direct Unsubsidized Loans
Subsidized Federal Stafford Loans	Unsubsidized Federal Stafford Loans
Federal Perkins Loans	Direct PLUS Loans	The subsidized portion of Direct Consolidation Loans
The subsidized portion of FFEL Consolidation Loans	The unsubsidized portion of Direct Consolidation Loans
	The unsubsidized portion of FFEL Consolidation Loans

When you are responsible for paying the interest on your loans during a deferment, you can either pay the interest as it accrues, or you can allow it to accrue and be capitalized (added to your loan principal balance) at the end of the deferment period. If you don’t pay the interest on your loan and allow it to be capitalized, the total amount you repay over the life of your loan may be higher. Unpaid interest is capitalized only on Direct Loans and FFEL Program loans. Unpaid interest is never capitalized on Perkins Loans.

Request a Deferment

Most deferments are not automatic—you need to submit a request to your student loan servicer, often on a form. Also, for most deferments, you must provide your student loan servicer with documentation to show that you meet the eligibility requirements for the deferment. Learn more about requirements and how to access request forms.

Understand Eligibility for a Deferment

There are a variety of circumstances that may qualify you for a deferment on your federal student loan.

Cancer Treatment Deferment

You may qualify for this deferment while you are undergoing cancer treatment and for the six-month period after your treatment ends.

Economic Hardship Deferment

You may qualify for this deferment if you

• are receiving a means-tested benefit, like welfare (e.g., Temporary Assistance for Needy Families (TANF));
• work full-time but have earnings that are below 150% of the poverty guideline for your family size and state of residence; or
• are serving in the Peace Corps.

You can only receive this deferment for up to three years.

Graduate Fellowship Deferment

You may qualify for this deferment if you are enrolled in an approved graduate fellowship program. A graduate fellowship program is generally a program that provides financial support to graduate students to pursue graduate studies and research. Most graduate fellowship programs are for doctoral students, but some are available to master’s degree students.

In-School Deferment

You are eligible for this deferment if you’re enrolled at least half-time at an eligible college or career school. If you’re a graduate or professional student who received a Direct PLUS Loan, you qualify for an additional six months of deferment after you cease to be enrolled at least half-time.

Important! If you are enrolled in an eligible college or career school at least half-time, in most cases your loan will be placed into a deferment automatically based on enrollment information reported by your school, and your loan servicer will notify you that the deferment has been granted. If you enroll at least half-time but do not automatically receive a deferment, you should contact the school where you are enrolled. Your school will then report information about your enrollment status so that your loan can be placed into deferment.

Note: In-school deferment is generally automatic, so in most cases it isn’t necessary to complete the In-School Deferment Request. However, if you’re enrolled at least half-time but do not automatically receive a deferment, you can either ask your school to report your enrollment information, as explained above, or complete the In-School Deferment Request.

Military Service and Post-Active Duty Student Deferment

You may be eligible for this deferment if

• you are on active duty military service in connection with a war, military operation, or national emergency; or
• you’ve completed qualifying active duty service and any applicable grace period. This deferment ends when you resume enrollment in an eligible college or career school on at least a half-time basis or 13 months following the completion date of active duty service and any applicable grace period, whichever is earlier.

how to defer student loans while in grad school

You typically don’t have to pay student loans in graduate school. You can defer payments on federal loans and most private student loans if you’re enrolled at least half-time.

But interest will accrue on all graduate school loans and any unsubsidized undergraduate loans during a deferment, increasing the amount you owe. If you can afford to make payments, you’ll likely save money in the long run.

You can do the following to defer loans while in grad school:

Wait for your school. Your school will report your enrollment status to the government. If you’re eligible for an in-school deferment, you should automatically receive it for your undergraduate and graduate federal loans.

Apply with federal loan servicers. If you want a graduate fellowship deferment, submit the application to your federal loan servicer. If you don’t receive an in-school deferment — and believe you should have — you can also apply directly for one, but check with your school first.

Contact private lenders. You will need to request an academic deferment if you have private student loans. Ask your lender or private loan servicer about its process.

Opt for forbearance. If deferment isn’t available, you could postpone payments with forbearance. All loans accrue interest during forbearance. Private lenders also limit this option, often to 12 months. Use this benefit only if necessary; you may want to hang onto private loan forbearance in case you lose your job or face a different hardship.