Student Loan Deferment And Student Loan Forbearance: All You Should Know

Often, making your student loan payment might seem a little daunting. You may have wanted to go back to graduate school, your admission-level salary is not what you anticipated, or a health problem prohibits you from working, but you have the option of deferral and forbearance to delay your payments and carry your current account without damaging your credit.

Each choice has its own requirements and time-period on eligibility. You can also choose to refinance student loans at a lower rate.

Student Loan Deferment: What Does It Mean?

The deferment of student loans is another form of indefinitely postponing payments for student loans. Unlike forbearance, interest on subsidized federal student loans and Perkins loans is not allowed to accrue. However other forms of loans will still accrue interest. In general, deferment is a safer option than forbearance if you are eligible.

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You are eligible for student loan deferment if you are

  • Stuck in a financial/economic hardship
  • If you do not have a stable job
  • If you are still in school
  • If you are in the military

Applying For Student Loans

This is the first step for anyone who wants to know how to defer student loans. Listed below are the steps you need to follow in order to get your student loans deferred

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Contact Your Lender

If your student loan service provider is new, examine your current statement to see who you are paying, as well as how to reach them.

Fill In The Deferment Form

Here you are required to go to the website of Federal Student Assistance, and fill in the correct form related to your case.

Submission Of Documents

Assemble your forms and any documentation requested and send them for approval to your loan service provider.

Making Steady Payments

You will need to keep making the payments until you're accepted for deferment. Deterring soon can damage your credit or trigger default.

Resume Payments or Apply Again

If your deferment expires and you require additional time to reapply, please contact your loan provider. Otherwise, keep on with your payments.

Student Loans Forbearance

Forbearance student loans allow you to delay your student loan payments temporarily for a specified period of time. But any interest which built up during the interval will capitalize post that, which implies the interest that you have to pay back is applied to the account balance. For this cause, forbearance is ideal as a last measure only.

There are two kinds of forbearance 


Often regarded as discretionary forbearance, general forbearance is accessible if you are unable to meet the payments due to medical costs, financial problems, work changes or other factors that might be approved by the federal student aid office. You must apply for this form of forbearance and at their discretion, the service provider has the right to refuse the appeal.


This form of forbearance is used in a variety of cases, such as when you are in a clinical internship or residency program, you are an activated National Guard member, or your payment is more than 20 percent of your monthly gross income (see the FSA website for a full list). If you qualify for this form of forbearance, your service provider will not reject your application.

Application For Student Loan Forbearance

The general forbearance is at the student loan servicer's discretion. Fill up the federal forbearance form and submit it to your loan provider or follow these measures to apply:

Contact Loan Provider

If your student loan provider is new, review your current statement to determine who you are owing and how to approach them. You may be able to seek forbearance over the telephone in some situations. Other service members may need a written application or form.

Make Steady Payments

Proceed to make the required contributions as planned until you have obtained a written notice that your forbearance is accepted.

Resume Payments or Apply Again

If your forbearance needs to be prolonged, notify your loan servicer before the expiration date. Otherwise, continue your planned payments, as the late payments could bring you into the default student loan.


There are alternatives to deferment and forbearance if you don't qualify for them, have unsubsidized loans or just want a better choice. Here are a few options to consider.

Refinancing Of Student Loans

Refinancing your student loans may help you apply for lower interest rates if you have good credit scores. Yet if you refinance federal student loans, you can no longer be eligible for programs of repayment, or IDR.

Income-Driven Repayment Plans

The income-driven repayment program does not stop your monthly payment but will be able to lower it for a longer period of time, because it is dependent on your earnings.


It is not an uncommon situation for anyone to be in, financial hardships can hit anyone, anytime and it hits hard. Options like these help people in situations where they find themselves unable to cope up with payments, as you read above how one can benefit from these programs. Nonetheless, it is important that you check and re-check everything before going ahead with any of the programs or plans, cause if you don’t do that, sometimes you may find yourself in situations much worse than you what you started out with. Hence, always be cautious while opting for any of the financial programs.