Deferment 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 Direct Loan, the federal government
may pay the interest during periods of deferment.
If the loan is an unsubsidized Direct Loan, you can pay the
interest or it will be capitalized back and added to the principal
of the loan.
You should notify your loan servicer immediately if you think
you are having difficulty in repaying your student loan.
The Federal
Student Aid website has tools and information to assist
you. The Loan Simulator tool can help you understand the
best repayment options and the impact of deferments. For detailed
information on deferments, see Student Loan Deferment on StudentAid.gov
for details.
To see if you qualify for any deferment option, please answer
the following questions:
1. Are you enrolled at least half-time in college or a
career school?
If yes, you may be eligible for a deferment. Please contact your
loan servicer for information.
2. Are you enrolled in an approved graduate fellowship
program?
If yes, you may be eligible for a deferment. Please contact your
loan servicer for information.
3. Are you in an approved rehabilitation training
program for the disabled?
If you are enrolled in a full-time rehabilitation training
program that is licensed, approved, certified, or otherwise
recognized as providing rehabilitation training to qualified
individuals by a state agency responsible for vocational
rehabilitation, drug abuse treatment, mental health services, or
alcohol treatment programs, or by the Department of Veterans
Affairs, you may be eligible for an education related deferment.
You will need to complete a deferment form and send completed forms
to the servicer of your loan(s).
4. Are you unemployed, or unable to find full-time
employment?
If yes, you may be eligible for an unemployment
deferment. This temporarily pauses your loan payments while
you look for work, and you won't have to make payments during the
approved period.
But starting July 1, 2027, this option will no
longer be available for new loans borrowed on or
after that date. If you already have loans before that deadline,
you can still use unemployment deferment under the current
rules.
See Student Loan Deferment on StudentAid.gov
5. Are you currently in a period of economic hardship
(this includes service in the Peace Corps)?
If yes, you may be eligible for an economic hardship
deferment.
But starting July 1, 2027, this option will no
longer be available for new loans borrowed on
or after that date. If you already have loans before that deadline,
you can still use economic hardship deferment under the current
rules.
See Student Loan Deferment on StudentAid.gov
6. Are you currently on active military service during a
war, military operation, or national emergency?
If yes, you may be eligible for a deferment. Please contact your
loan servicer for information.
7. Have you recently completed qualifying active-duty
military service, and are you still within the eligible
post-active-duty period?
If yes, you may be eligible for a Post-Active-Duty Student
Deferment. This deferment generally ends on the earlier of:
- The date you return to school at least half-time, or
- 13 months after completing your qualifying active-duty service
(and any applicable grace period).
Contact your loan servicer for information about applying for
this deferment.