Deferments and Forbearance Options
If you are unable to repay a loan that
is part of the federal education loan program, there are deferment options
for which you may be eligible. A deferment allows you to postpone your scheduled
monthly payments. .
If the loan is a subsidized Federal Direct Loan
or Perkins, the federal government may pay the interest during periods of
deferment. If the loan is an unsubsidized Federal Direct Loan, you can pay
the interest or it will be capitalized back (added on) to the principal of
You should notify your loan servicer immediately if you think
you are having difficulty in repaying your student loan.
you are willing but unable to make payments on your federal loan(s), and you
do not qualify for a deferment, you can request forbearance. Forbearance is
a temporary release from making loan payments, an extension of time for making
payments or a temporary reduction in payment amounts.
One big difference
between deferments and forbearance is that you are responsible for paying
any interest that accrues on all types of loans during the forbearance period.
You may pay the accruing interest, or add it to the loan principal (this is
called "capitalizing") and pay it later when the forbearance ends. However,
remember that capitalization means you will be paying interest on interest
-- the total cost of your loan repayment will be considerably higher.
see if you qualify for any deferment or forbearance options, please answer
the questions below:
Are you enrolled in school or a graduate fellowship program?
Are you a volunteer in a tax-exempt organization?
Are you unemployed?
Are you serving in the military, National Oceanic and Atmospheric
Administration Corps, or Commissioned Corps of Public Health of the United
Has the borrower or student died? Have you or your spouse
or your dependent become disabled? Have you filed for bankruptcy?
Are you a teacher?
None of the above