Student Loan Deferment and Forbearance: The Ultimate Guide

In a perfect world, you’d be able to make your student loan payments every month without stress. But sometimes, life throws you a curveball.

If you find yourself in a difficult financial situation, you should know that there are federal programs available to assist you with making your student loan payments.

Specifically, it’s possible to apply for either student loan deferment or forbearance. These terms mean slightly different things, which we’ll discuss later. But both are a way for you to either temporarily reduce or postpone your student loan payments.

Because this can be such a vast and confusing topic, we’ve created this guide. Below, you’ll learn about the different types of student loan deferment and forbearance available. We’ll also look at how to apply for student loan deferment or forbearance, as well as some alternatives to consider first.

What Is Student Loan Deferment?

Student loan deferment is when the federal government temporarily suspends payments on your student loans.

There are many potential reasons you can get your loan payments deferred, but you generally need to fill out an application. Your loan servicer will also typically require documentation showing that you meet the eligibility requirements for deferment.

We’ll discuss the reasons you can get your loans deferred (and the application process) in a bit. But first, what’s the difference between student loan deferment and forbearance?

What Is Student Loan Forbearance?

Generally, student loan forbearance means the same thing as deferment: you temporarily stop making federal student loan payments. There are a couple of differences, however.

First, forbearance can mean a temporary reduction of your monthly student loan payments in some cases. It’s up to your loan servicer to decide if they want to reduce or completely suspend your loan payments during the forbearance period.

Second, the circumstances that make you eligible for forbearance can be different from those for deferment. We’ll cover this more in the next couple of sections.

For now, the main thing to know is that either deferment or forbearance might be more appropriate depending on your specific life/financial situation.

So what are the reasons you can get your student loans into deferment or forbearance? Keep reading to find out.

8 Reasons You Can Get Student Loan Deferment

From medical to educational to financial, there are eight main reasons you can get your student loans deferred. Here’s a look at each:

Cancer Treatment Deferment

While we hope you never have to go through cancer treatment, you should know that it’s a potential reason to defer your student loan payments.

According to the Federal Student Aid website, “You may qualify for this deferment while you are undergoing cancer treatment and for the six months after your treatment ends.”

How to apply: Fill out the Cancer Treatment Deferment Request form.

Economic Hardship Deferment

If your income is consistently very low, or if you’re receiving government financial assistance, then you may be eligible for an economic hardship deferment. Under this deferment, you can suspend payments on your eligible student loans for up to 3 years.

Specific reasons for getting an economic hardship deferment include:

Receiving a “means-tested benefit” (such as welfare)
Working full-time with earnings that are “below 150% of the poverty guideline for your family size and state of residence”
Serving in the Peace Corps

How to apply: Fill out the Economic Hardship Deferment Request form.

Graduate Fellowship Deferment

Did you receive a graduate fellowship to support you while working on your research? Congratulations!

In many cases, receiving a graduate fellowship will qualify you for the graduate fellowship deferment. This is most common for doctoral students, but some master’s students may be eligible as well.

The idea is that since graduate fellowships usually provide only enough money for basic living expenses, deferring your loan payments can ease your financial burden.

How to apply: Fill out the Graduate Fellowship Deferment form.

In-School Deferment

Still in school? Then you can probably defer your federal student loan payments.

You qualify for in-school deferment if you’re “enrolled at least half-time at an eligible college or career school.” And if you’re a graduate or professional student, then you can get six months of additional deferment “after you cease to be enrolled half-time.”

Unlike most forms of deferment, in-school deferment is typically automatic. Your school will notify your loan servicer of your student status, and the servicer will then place your loans in deferment. You don’t have to fill out an application.

How to apply: Usually, your school will notify your loan servicer and handle all the necessary paperwork. If your loans aren’t automatically placed into deferment while you’re in school, you can either ask your school to report your enrollment information OR fill out the In-School Deferment Request form.

Military Service and Post-Active Duty Student Deferment

Military service is another potential reason to receive loan deferment. Here are the specific criteria:

You’re currently on active duty military service “in connection with a war, military operation, or national emergency”
You’ve finished “qualifying active duty service and any applicable grace period”

The first case is fairly straightforward: you can get your loans deferred for the duration of your active duty service.

The second case is a bit more complicated. If you’ve finished qualifying active duty service and any applicable grace period, then your loans will be deferred for 13 more months.

But if you enroll in a college or career school at least half-time before those 13 months are up, your deferment will end automatically.

How to apply: Fill out the Military Service and Post-Active Duty Student Deferment Request form.

Parent PLUS Borrower Deferment

This next deferment is a bit different because it applies to the parents of students. If you took out a Parent PLUS loan to pay for your dependent child’s education, then you can request a deferment.

This deferment will last for as long as the student you took out the loan for is enrolled at least half-time in an eligible college or career school. You can also continue to receive this deferment for an “additional six months after the student ceases to be enrolled at least half-time.”

How to apply: Fill out the Parent PLUS Borrower Deferment Request form. Alternatively, you may be able to request a deferment when you submit a Direct PLUS Loan Request to your child’s school. Check with the school’s financial aid office for specific guidance.

Rehabilitation Training Deferment

It’s possible to get your student loans deferred if you’re completing rehabilitation training.

Specifically, you may be eligible for a deferment if “you’re enrolled in an approved rehabilitation training program that is designed to provide vocational, drug abuse, mental health, or alcohol abuse rehabilitation treatment.”

How to apply: Fill out the Rehabilitation Training Deferment Request form.

Unemployment Deferment

The final reason you can get your loans deferred is unemployment. You may be eligible if you “receive unemployment benefits or you are seeking and unable to find full-time employment.”

You can receive this deferment for up to 3 years.

How to apply: Fill out the Unemployment Deferment Request form.

Reasons You Can Get Student Loan Forbearance

As you can see, there are lots of potential reasons you can get a student loan deferment. Student loan forbearance is no different, with a variety of reasons you can temporarily reduce or cease your student loan payments.

Here’s a look at each reason in detail:

General Forbearance

There are two main types of loan forbearance: general and mandatory.

With general forbearance, it’s up to your loan servicer to decide if you qualify. For this reason, it’s sometimes called “discretionary forbearance.”

Potential reasons to receive general forbearance include:

Financial difficulties
Medical expenses
Change in employment
Other reasons acceptable to your loan servicer

Discretionary forbearance is available for all Direct Loans, Federal Family Education (FFEL) Program loans, and Perkins Loans.

Your loan servicer can grant a general forbearance for no more than 12 months at a time, and for no more than 3 years cumulatively.

How to apply: Complete the General Forbearance Request form.

Mandatory Forbearance

Mandatory forbearance is the other main type of student loan forbearance. It’s “mandatory” because if you meet the criteria, your loan servicer is required to grant it.

You may receive a mandatory forbearance for up to 12 months at a time. If you still meet the eligibility requirements after your current forbearance expires, you can request an additional mandatory forbearance.

Here are the reasons you might be eligible for mandatory forbearance:

AmeriCorps

To be eligible for this forbearance, you must be “serving in an AmeriCorps position for which you received a national service award.”

How to apply: Follow the instructions on the AmeriCorps website.

Department of Defense Student Loan Repayment Program

This next form of mandatory forbearance is an interesting case. You may be eligible for mandatory forbearance if you “qualify for partial repayment of your loans under the U.S. Department of Defense Student Loan Repayment Program.”

Essentially, the Department of Defense can repay part of your student loans as a recruitment or retention tool.

You can learn more about the program here. But if you’re applying for this form of forbearance, you probably know the details.