Student Financial Services
Deferment & Forbearance
Definitions
- A Deferment
- allows you to postpone repayment and stops interest from accruing on most loans while you're in a specific qualifying situation. (The Direct Unsubsidized Loan does continue to accrue interest.) Not all loan programs offer the same types of deferment. Our Deferment/Forbearance chart details the options available for each loan program. It's important to review all of the loans you've borrowed and determine how to handle each one individually.
- A Forbearance
- allows you to temporarily reduce your monthly payments to interest-only payments. Interest continues to accrue on all loan types and must be paid each month.
Application Process & Important Tips
- You can choose to defer certain loans and continue paying others. Can you afford to repay some of your loans & postpone others?
- Deferment is a better option than forbearance because interest does not continue to accrue on most loans during deferment. Consider forbearance only in situations where you aren't eligible for deferment.
- Complete the application process with each of your servicers. Some forms have sections that must be completed by your employer, school official, or residency program director. Other forms may be returned directly to your servicer(s).
- The deferment/forbearance can only be granted in 3-12 month increments. You must reapply to extend the length of any approved deferment/forbearance.
- You'll be notified once the servicer has determined your eligibility. You may need to provide additional documentation if requested and you'll need to keep making payments until your application is approved.
- Keep track of your deferment/forbearance end-date and be prepared to reapply or for repayment to resume.
- TIP for Federal Perkins Loan borrowers: If you are currently unemployed or under employed (working less than 30 hours a week) and are actively seeking employment and/or you are receiving unemployment benefits, apply for an Unemployment Deferment. If you are working 30 hours or more and are experiencing financial hardship, apply for an Economic Hardship Deferment.