Deferment/Forbearance

Deferment and forbearance are the terms used for postponing your student loan payments.

Deferment is when you are postponing your payments for a specific period time for a specific reason. Deferment is are not automatic; you must apply for deferment through your lender. Here are some reasons you might be granted a deferment:

• Enrollment in school at least half time
• Graduate fellowship
• Rehabilitation training
• Unemployment
• Economic hardship

Forbearance is another way to postpone your student loan payments if you are not eligible for a deferment. There are four specific reasons why you can be granted forbearance:

• Discretionary: Can be granted for any reason agreed upon between you and your lender (e.g., returning to school less than half time and not eligible for deferment).
• Administrative: Can be granted by your lender for specific reasons without your written authorization (e.g., loan payments were behind at the time a deferment was granted).
• Mandatory: Must be granted by your lender for specific reasons if you request, for a specific length of time (e.g., your loan payments equal more than 20 percent of your monthly gross income). A mandatory forbearance can be granted for no more than 12 months.
• Mandatory Administrative: Must be granted by your lender for specific reasons (e.g., you are not able to repay using an income-sensitive repayment schedule within 10 years because of changes in the variable interest rate). A mandatory administrative forbearance can be granted for no more than 36 months.

To be granted a forbearance, you must speak to your lender regarding the above options. If you do not know who your lender is, you can call the Federal Student Aid Information Center at 1-800-433-3243 or go to www.nslds.ed.gov with your PIN.