Deferment and Forbearance

If making your loan payments seems impossible because of unemployment or other debts, you still can avoid default. Look into deferment and forbearance, which both offer temporary relief from loan payments.

Deferment allows you to postpone loan payments for up to a total of three years after you have graduated or left school. If you still are enrolled at least half time, there is no maximum time limit for deferment. While your loans are deferred:

• Interest will not build on subsidized Stafford and Perkins loans Links to an external site..

• Interest will accumulate on unsubsidized loans and PLUS loans.

If you don’t meet the requirements for deferment, you still could qualify for forbearance. You can reduce, postpone, or extend the time for making payments with forbearance, which has the same three-year total time limit as deferment. Interest is added to all types of loans during a forbearance period.

Only use deferment or forbearance as a last resort. If you’re looking to reduce your loan expenses so you have more spending money, look for ways to save money elsewhere.

 

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