Options
Loan deferment - you may be able to get your loan deferred (temporary suspension of payments) for a pre-determined amount of time.
How to Qualify for a Deferment:
- At least half-time study at a postsecondary school (a college or university beyond high school)
- Study in an approved graduate fellowship program or in an approved rehabilitation training program for the disabled
- You are unable to find a job. In this case, your loan may be deferred for up to three years
- Economic hardship
During the deferment period, you don't have to pay interest on the loan if you have a subsidized FFEL or Direct Stafford Loan or a Federal Perkins Loan. If you have an unsubsidized FFEL or Direct Stafford Loan, you will have to pay the interest during deferment.
Forbearance - If you are not eligible to receive a deferment, you may be eligible for loan forbearance, a temporary postponement or reduction of payments due to economic hardship. With forbearance, however, interest on your loan continues to accrue, and you must pay it. To receive forbearance, contact your loan servicer for an application.
Loan cancellation - The following circumstances may qualify you for loan cancellation:
- Death or permanent disability.
- Your school closes before you complete your program.
- You work in certain public school professions, such as a low-income school.
- You file for bankruptcy.
