Deferment for Student Loans

deferment for student loans

A deferment for student loans is a valuable option for borrowers who are facing temporary financial difficulties and are unable to make their loan payments. It allows them to temporarily postpone their loan repayment obligations, providing much-needed relief during challenging times.

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Deferment for Student Loans: What You Need to Know

Deferment for student loans is an option offered by loan servicers that allows borrowers to temporarily halt their loan payments. This temporary postponement can be a lifesaver for students who are experiencing financial hardship, such as unemployment or economic downturns.

During the deferment period, interest may continue to accrue on subsidized and unsubsidized student loans. However, for borrowers with subsidized loans, the government covers the interest during the deferment period. This means that the borrower won’t be responsible for paying the interest that accrues on subsidized loans.

It’s important to note that deferment is not a permanent solution and should only be used as a temporary relief option. Borrowers should explore other repayment strategies and options to ensure long-term financial stability. Additionally, not all loans or loan servicers offer deferment options, so borrowers should check with their specific loan servicer to determine eligibility.

Types of Deferment for Student Loans

There are several types of deferment options available for student loans. These include:

Type of DefermentEligibility Criteria
Economic HardshipBorrower must be receiving federal or state assistance, serving in the Peace Corps, or facing unemployment
Enrollment in SchoolBorrower must be enrolled at least half-time in an eligible education program
Military ServiceBorrower must be on active duty in the military or serving in the National Guard or Reserves
Rehabilitation TrainingBorrower must be enrolled in an approved rehabilitation training program for individuals with disabilities
Temporary Total DisabilityBorrower must be unable to work or attend school due to a temporary total disability

FAQs About Deferment for Student Loans

1. Can I defer my student loans if I am unemployed?

Yes, if you are facing unemployment, you may be eligible for an economic hardship deferment. This will allow you to temporarily postpone your loan payments until you are able to find employment or improve your financial situation.

2. Will interest continue to accrue during deferment?

For subsidized loans, the government covers the interest that accrues during deferment. However, for unsubsidized loans, interest will continue to accrue and will be added to the total loan balance.

3. How long can I defer my student loans?

The length of deferment varies depending on the type of deferment and the borrower’s specific circumstances. Generally, deferment periods range from six months to three years.

4. Can I defer my private student loans?

Deferment options for private student loans may vary depending on the lender. It’s important to contact your private loan servicer to inquire about deferment possibilities and eligibility.

5. Can I defer my student loans if I am serving in the military?

Yes, if you are on active duty in the military or serving in the National Guard or Reserves, you may qualify for a deferment. Contact your loan servicer and provide the necessary documentation to determine your eligibility.

6. Will deferment affect my credit score?

No, deferment itself does not negatively impact your credit score. However, it’s important to continue making timely payments on your loans whenever possible to maintain a positive credit history.


Deferment for student loans can provide temporary relief for borrowers facing financial hardships. It’s important to explore all available options and communicate with your loan servicer to determine the best course of action for your specific circumstances.

If you are eligible for deferment, take advantage of the opportunity to temporarily postpone your loan payments. However, it’s crucial to remember that deferment is not a permanent solution and should be used wisely, with a long-term plan in mind. Ensure you stay informed about your loan terms and repayment options to achieve financial stability in the future.

Take control of your student loans and make informed decisions to secure a brighter financial future.

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