Fast Fact

You can postpone your loan payments a maximum of 3 years if you can't find a job.

Source: Student Aid on the Web, 2009–2010

Postpone Payments

Everyone experiences financial difficulty at one time or another. Fortunately, you can usually postpone loan payments under certain circumstances using a deferment or forbearance.

A deferment or forbearance may be the right choice to keep your loan from entering default.

  Deferment Forbearance
What Is It Deferment is a period of time during which your lender temporarily suspends your regular payments. Forbearance is a period of time during which your lender temporarily reduces or suspends your regular payments.
Reasons to Apply
  • Enrollment in school
  • Economic hardship
  • Unemployment
  • Military service
  • Temporary financial hardship
  • Natural disaster
  • Internship or residency
  • National service
Who Pays the Interest

Subsidized federal loans—The government pays the daily interest that accrues.

All other loan types—You are usually responsible for paying the daily interest that accrues.

All loans—You are usually responsible for paying the daily interest that accrues.

Loan programs come with limited amounts of deferment and forbearance time, so use these opportunities wisely.

Helpful Tips

Online Resources

Download deferment and forbearance forms online or contact your servicer directly to apply for a deferment or forbearance or to determine eligibility.