What is a deferment?

Under certain conditions (and depending on the date of your loan) you can postpone (defer), the payments on your student loan. You must qualify for and, in most cases, request the deferment.

If you have a Federal Subsidized Stafford Loan, the federal government pays the interest on your behalf while you are in school at least half-time, in a six-month grace period following school, or during an authorized period of deferment.

All other loans will accrue interest during your deferment period and you will be billed on a quarterly basis for that interest. If possible, it is wise to make interest payments during your deferment period to keep the growth of your principal balance to a minimum.

Common deferments include:

• School Deferment
• Economic Hardship Deferment
• Unemployment Deferment
• Military Deferment

Review your deferment eligibility options using the Deferment Navigator.