If you’re struggling with a change to your finances or income, a student loan deferment can give you a break — but it’s temporary. The maximum amount of time you can pause payments with a federal student loan deferment is three years.
Forbearance is similar to deferment, in that it allows you to temporarily stop making payments on your federal student loan. However, unlike deferment, forbearance is usually capped at just 12 months.
Deferment and forbearance periods for private loans vary by lender, as do eligibility rules.
| Important: Due to the ongoing administrative forbearance of all federal student loans, you may not need to defer payments if your loans are already eligible for the ongoing pause. The pause is set to expire 60 days after June 30, 2023, or once the Supreme Court announces their decision on student loan forgiveness, whichever comes first. |
Student loan deferment is not automatic. To qualify, you’ll need to meet certain criteria. You may be eligible for deferment if one of the following cases applies:
For federal loans: You’ll have to meet specific eligibility requirements for the type of deferment you’re seeking. You’ll also need to fill out an application for your servicer to review, and most likely you’ll need to submit supporting documentation as well.
It also matters what kind of student loan you have. If you have one of the following loan types, you won’t have to pay the interest that accrues while you’re in deferment:
You are responsible for the interest with these loans:
For private loans: Contact your student loan servicer to see what types of deferment are allowed. Your servicer can also explain whether an application is required and what kind of documentation you’ll need to provide. For example, SoFi offers the following:
For federal or private loan deferments, you can either pay the interest as you go, or let the interest accrue and then add it to your loan balance. This is called capitalization, because it becomes part of your principal at the end of the deferment period and then you have to pay interest on that, too.
The following deferment types apply to federal student loans, but your private loan servicer may have similar requirements.
Your payments are automatically deferred if you’re still in school. You must be enrolled at least half-time at an eligible school. If your loan is not automatically deferred, fill out and submit the In-School Deferment Request form. Graduate students with Direct PLUS loans have an additional six months of deferment after enrollment drops below half-time.
If you have a parent PLUS loan, and the student for whom you took out the loan is enrolled at least half-time at an eligible school, you can request a deferment using the Parent PLUS Borrower Deferment Request form.
You can defer your student loan during treatment for cancer and for six months after treatment ends. You’ll use the Cancer Treatment Deferment Request form in this case.
If you are receiving welfare benefits, earn less than 150% of the federal poverty line, or are serving in the Peace Corps, you can complete an Economic Hardship Deferment Request. This deferment can remain in place for up to three years.
Students enrolled in approved graduate fellowship programs may qualify for this deferment by submitting a Graduate Fellowship Deferment Request.
If you’re currently serving on active duty connected with war or national emergency, or during the grace period immediately following this active duty, you can qualify for military service deferment. The form to use is the Military Service and Post-Active Duty Student Deferment Request.
This type of deferment is for people enrolled in approved programs for mental health or substance abuse rehabilitation. Use the Rehabilitation Training Deferment Request form.
If you’re currently receiving unemployment benefits or if you’re actively seeking work and unable to find a job, you can receive deferment for up to three years with an Unemployment Deferment Request.
Each deferment type has its own form to fill out. You can access the forms by visiting StudentAid.gov.
The forms are interactive, so you can type in your information and print them out to be signed.
Pay close attention to each section of the form. Each one will ask for your name, contact information, and Social Security number. You may need to enter additional information such as your income or family size. Some forms require you to check off boxes and attach documents as well.
You might also need signatures from third parties, such as a school official or doctor, depending on the type of deferment you’re requesting.
When you’re finished, mail the completed forms to your loan holder. For Direct Loans, that’s the U.S. Department of Education; for other types of loans, it may be a bank or loan servicer.
Before you agree to student loan deferment, consider the advantages and disadvantages.
While deferment may help your current circumstances, you’ll eventually have to start paying on your loans again. If you have one of the loans where interest will accrue (see above), you can expect your loan balance to be higher when deferment ends.
| For example: Let’s say you have $30,000 left to pay off with a 6.00% interest rate, a loan term of 10 years, and a monthly payment of $333. By deferring your payments for three years, your total balance will increase by $5,400. Once deferment ends, you’ll have $35,400 to pay off with a new monthly payment of $393. |
Consider whether the $5,400 in extra costs is worth the three-year break from repayment.
If student loan deferment isn’t the right option for you or your application is rejected, there may be other ways to get relief.
| Duration | Interest | Eligibility | Affects credit | |
|---|---|---|---|---|
| Deferment | Can be up to 36 months (for federal loans) | Depending on loan, interest may not accrue | May qualify depending on circumstances | No |
| Forbearance | Can be up to 12 months (federal loans) | Interest accrues | May qualify depending on circumstances | No |
| Income-driven repayment (federal loans only) | Life of the loan | May save on interest | Must have federal loans | No |
| Consolidation (federal loans only) | Can be up to 30 years | Fixed for the life of the loan | Most Direct Loans and FFEL Program loans are eligible | Slight impact |
| Refinancing | 5-20 years of repayment terms | Fixed or variable rates | Requirements vary by lender, but most borrowers can qualify with a cosigner | Yes |
You can call your student loan servicer to request a temporary forbearance. Your servicer has the discretion to let you pause payments for a time if necessary, but you’ll never know if you don’t ask. In a few cases, forbearance is automatic, such as if you’re serving in the National Guard.
| Tip: It’s a good idea to contact your servicer right away if you’re having a hard time making payments. |
For federal student loans, this option adjusts your monthly payment based on income and family size to make it more affordable. You’ll usually pay 10% or 20% of your income under these plans, but your payment could be as low as $0.
These plans may adjust your loan term length, which could extend your loan longer than you’d like, so be sure to calculate the difference before going this route.
Consolidating multiple loans into one new loan lets you simplify and streamline your student loan debt, and can lower your monthly payment, too.
For federal student loans, check out the Direct Consolidation Loan offered by the U.S. Department of Education.
When you refinance student loans, you work with a private lender (like a bank, credit union, or online company) to get a new loan with new terms. Refinancing your student loan might help you save money, especially if you qualify for a lower interest rate.
You can refinance federal and private loans, but beware: Refinancing federal student loans means you’ll lose access to federal benefits like student loan forgiveness.
Related: Learn more about refinancing your student loans on Credible.com