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Loan Deferment

Loan deferment might be a good choice for students facing temporary financial challenges. Most college loan payments can be deferred for a few months when students are enduring economic hardships, unemployment, military deployment or enrolled in school at least half-time.

Students must apply for loan deferment through the loan provider. College loans that qualify for deferred payments include: Parent PLUS, Graduate PLUS, Stafford, federal, and private student loans. Students that have entered into college loan consolidation may also qualify for loan deferment.

Loan deferment students who are enrolled and attending classes at least half-time can apply for In-School deferment. Eligibility requirements include attending an accredited college or university and holding a federal Stafford, PLUS, or Supplemental loan, as well as consolidated student loans.

Many students do not realize they can apply for a family leave student loan deferment if they are pregnant or recently gave birth to or adopted a child. Students must have attended college at least on a half-time basis and during the six months preceding the parental loan deferment application. Students can obtain a maximum six-month deferment for each pregnancy or birth and hold outstanding Federal Supplemental or Stafford loans which were acquired prior to July 1, 1993.

Five types of public service student loan deferment options are available to eligible students. Public service loan deferment programs are available to students who are involved in active duty of the military, NOAA Corps, Peace Corps, Commissioned Corps of Public Health Service, and volunteers of tax exempt organizations.

Post graduates who become unemployed can apply for unemployment loan deferment. This deferment plan is only available to students who have attended college within the previous three years and has strict eligibility requirements.

In order to qualify for unemployment student loan deferment, graduates must provide proof they are actively seeking full-time employment by registering with an employment agency. Additionally, graduates must hold outstanding Federal student loans including PLUS, Stafford, Supplemental or have entered into federal student loan consolidation.

Economic hardship loan deferment is offered to students that meet income requirements. Students who receive public assistance payments or earn 220-percent less than the poverty level generally qualify for economic hardship assistance. Many variables exist with economic hardship loan deferment, so students should consult with their lender.

Disability loan deferment is offered to graduates who are no longer able to work due to illness or injury. Students caring for a spouse or dependent who is disabled may also qualify for student loan deferment. Students must provide evidence of the disability and hold outstanding Federal PLUS, Stafford, Supplemental or consolidation loans.

Each type of loan deferment will require appropriate documentation. Students are responsible for making deferred payments at a later time unless they qualify for student loan forgiveness. Details of student loan deferment programs can be found at

We invite you to learn more about student loan consolidation, loan deferment programs, and student loan forgiveness in our education loan article library. Here you'll find information and resources to help determine which type of loan deferment or loan consolidation plan is best suited for your needs, along with budgeting and money management strategies to help you get out of debt.

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Published on May 10, 2010 at 02:01 AM

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