Deferment

---

Important Terms

Deferment
The postponement of payment under special circumstances. The federal government pays the interest that accrues on subsidized Federal Stafford Loans during deferment periods. Federal SLS and unsubsidized Stafford Loans do not receive this interest subsidy.

Forbearance
The temporary postponement or reduction of payments. A forbearance is generally offered only at the lender's discretion. The borrower is responsible for all interest that accrues during a forbearance period.

---

Deferment
If due to special circumstances you aren't able to make you monthly payments, you may be eligible to defer (or postpone) you payments for a period of time known as deferment. During deferment your monthly principal payments are postponed and the federal government pays the interest on the subsidized Federal Stafford Loans. For an unsubsidized Federal Stafford or SLS borrower, you monthly principal payments are postponed during deferment, but you are responsible for all interest that accrues. The federaal governement does not provide interest subsidy for these loans.

Deferment Lengths
The length of the deferment varies depending on which deferment you qualify for. Some deferments last only one year while others have no time limits. Immediately following the end of the deferment, you must begin repayment.

If you think you are eligible for a deferment contact your lender. You'll need to follow up with any documentation required to process the deferment. Following is a summary of the types of deferments available. Read the list carefully, noting the exceptions and limits to each deferment.

Deferment Types

• Unemployment
  2 years
• Full-time enrollment at an eligible school
  none
• Half-time enrollment at an eligible school if you borrow under the Federal Stafford or SLS programs during the enrollment period.*
  none
• Participation in an approved rehabilitation program
  none
• Study under an approved graduate fellowship program
  none
• Serving an internship/residency necessary for professional practice
  2 years
• Serving an internship/residency leading to a degree or certificate from an institution of higher education, hospital or health-care facility that offers post-graduate training.
  2 years
• Temporary, total disability, or inability to work because caring for a temporarily, totally disabled spouse or dependent.
  3 years
• Parental leave to care for a newborn, if you attend school in the six months prior to the leave.
  6 months
• Mothers with preschool-age children who are entering or re-entering the work force at no more that $1 above minimum wage.*
• Service in the National Oceanic and Atmospheric Administration (NOAA).*#
• Volumteer service in the Peace Corps, Action , or VISTA programs, or full-time volumteer service in a tax-exempt organization comparable to the Peace Corps or Action programs
• Active duty service in the U.S. Armed Forces or service as an officer in the Commissioned Corps of the U.S. Public Health Service.#
• Full-time teaching in a private, non-profit or public elementary or secondary school in a teacher shortage area*

# A total of 36 months is available for the NOAA, Armed Forces and U.S. Public Health service deferments, combined.

Deferment Type
Maximum Length

• Unemployment
  3 years
• At least half-time enrollment at an eligible school
  none
• Participation in an approbed rehabilitation program
  none
• Study under an approved graduate fellowship program
  none
• Experiencing economic hardship as definged by the Department of Education
  3 years

Rights and Responsibilities Consolidation

Home | About U.S. Bank | Financial Aid | Order Materials | Other Aid Info

Index of Common Terms