Debt Management Tips -Postponing Payments

There are two options available if you need to postpone making payments on your student loans.

Deferment

The type of deferment for which you may be eligible depends on the type of loan and the date on which you received your first loan. Loans may be deferred if you are:

undergoing cancer treatment;
experiencing economic hardship;
in a graduate fellowship program;
enrolled in school at least half-time;
performing qualifying military service;
a post-active duty service member;
a Parent PLUS borrower with student enrolled in school;
enrolled in a rehabilitation training program; or
unemployed

Forbearance

Forbearance allows you to temporarily postpone your payments, or allow you to temporarily make smaller payments. However, you probably won’t be making any progress toward forgiveness or paying back your loan. As an alternative, you may consider income-driven repayment.

Income-driven repayment is granted at the discretion of your lender or servicer. You must apply for a forbearance, and you are responsible for the interest that accrues during the forbearance period regardless of your loan type.

Common situations for which a discretionary forbearance may be granted include:

Financial difficulties
Medical expenses
Change in employment
Other reasons acceptable to your loan servicer

Depending on your situation, there are other types of mandatory forbearance that are available. If you meet the eligibility requirements for a mandatory forbearance, your loan servicer is required to grant the forbearance. Some of these situations include but are not limited to:

Medical or dental internship/residency
Department of Defense Loan Repayment Program
Americorps
National Guard duty
Teacher Loan Forgiveness

For more information on options to postpone payments, visit studentaid.gov.