DefermentsA deferment is a temporary postponement of payments on your student loan if you meet specific requirements. Deferment eligibility is often contingent on your specific situation, when you received your first outstanding loan, and what type of loan you have.
Common deferments include:
- In-School Deferment if you go back to school at least half-time. Learn more about In-School Deferment or download the In School Deferment form.
- Economic Hardship Deferment if you receive public assistance, serve in the Peace Corps, or make less than the minimum wage or poverty guideline. Learn more about Economic Hardship Deferment or download the Economic Hardship Deferment form.
- Education-Related Deferment if you're accepted into a graduate fellowship program or are working an internship or residency program. Learn more about Education-Related Deferment for loans received on or after 7/1/1993, learn more about Education-Related Deferment for loans received prior to 7/1/1993, or you may download the Education-Related Deferment form.
- Military Deferment if you serve on active military duty in the Armed Forces or National Guard.Learn more about Military Deferment or download the Military Deferment form.
- Unemployment Deferment if you can't find employment. Learn more about Unemployment Deferment or Udownload the Unemployement Deferment form.
Additional deferments are available for various circumstances. If you need assistance, call our Default Prevention Counselors at 1-877-293-8946 or email MGSLP Default Prevention.
NOTE: If you qualify for a deferment, the Department of Education will pay the interest that accrues on your subsidized Stafford loans while you are on a deferment. If you have any unsubsidized Stafford loans, you are responsible for the interest accruing on those.
You may choose to pay the interest while in deferment or let it accrue and be capitalized (added to your principal balance) at the end of the deferment period. Capitalized interest increases your balance and can lead to a higher monthly payment as well as more interest paid over the life of the loan.