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Deferments and Forbearances


Is it ever possible to postpone repayment of my loan?

Yes. Under certain circumstances, you can receive a deferment or forbearance on your loan.


Deferments

A deferment allows you to temporarily postpone payments on your loan. If you have a subsidized loan, including Perkins Loans, you will not be charged interest during the deferment. If your loan is unsubsidized, you will be responsible for the interest on the loan during the deferment. If you don't pay the interest as it accrues, it will be capitalized and increase the amount you will have to repay.

For information on deferments available to borrowers with outstanding loans received prior to July 1, 1993:

Direct Loan borrowers should contact the Direct Loan Servicing Center at:
Borrower Services: 1-800-4-FED-AID
Fax: 1-800-848-0984
TTY: 1-800-848-0983
www.dl.ed.gov

FFEL borrowers should contact the lenders or agencies holding the loans.

Perkins borrowers should contact their loan servicer or the school that issued the loan.

You can't receive a deferment if your loan is in default.


Forbearances

If you are temporarily unable to meet your repayment schedule but are not eligible for a deferment, you may receive forbearance for a limited and specified period. During forbearance, your payments are postponed or reduced. Whether your loans are subsidized or unsubsidized, you will be charged interest. If you don't pay the interest as it accrues, it will be capitalized.

For example, you may be granted forbearance if you are:

  • unable to pay due to poor health or other unforeseen personal problems
  • serving in a medical or dental internship or residency
  • serving in a position under the National Community Service Trust Act of 1993 (forbearance may be granted for this reason for a Direct or FFEL Stafford Loan, but not for a Direct or FFEL PLUS Loan)
  • obligated to make payments on certain federal student loans that are equal to or greater than 20 percent of your monthly gross income.

Deferments and forbearances are not automatic. If you have a Direct Loan, you must contact your Direct Loan Servicing Center to request either option. If you have a FFEL Loan, you must contact the lender or agency that holds your loan. Perkins borrowers should contact their loan servicer or the school that issued the loan. For each program, you may have to provide documentation to support your request. You must continue making scheduled payments until you receive notification that the deferment or forbearance has been granted. Failing to make payments on your loan may have a negative effect on your credit rating.

Last updated/reviewed July 12, 2006

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