Deferments and Forbearance Options

Deferments

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 stop making scheduled payments temporarily. If the loan is a subsidized Stafford/Direct loan, the federal government may pay the interest. If the loan is an unsubsidized Stafford/Direct loan, you can pay the interest or it will be capitalized back to the principal of the loan. You should notify your lender immediately upon realizing you are, or may be, having difficulty in repaying your student loan obligation.

Forbearance

If you are willing but unable to pay on your FFELP/FDL 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. Forbearance is less favorable than a deferment for your subsidized loan(s) because you are responsible for paying any interest that accrues on your loan 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. Remember, however, that capitalization means you will be paying interest on interest - the total cost of your loan repayment will be considerably higher.

To see if you qualify for any deferment or forbearance options, please answer the questions below:

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