Deferment is a period in which repayment of the principal balance is postponed. During a deferment, the government pays the interest charged on Federal Direct Subsidized Loans; you are responsible for the interest that accrues on Federal Direct Unsubsidized, PLUS, Unsubsidized Consolidation, and PLUS Consolidation Loans in deferment. If you are not eligible for a deferment you may still be eligible for forbearance.
There are several deferment types:
- Econmic Hardship Deferment Request
- Education Related Deferment Request
- Teacher Shortage Area
- In School Deferment Request
- Engaged in at least half-time studies
- Engaged in a Graduate Fellowship
- Engaged in Rehabilitation Training
- Parental Leave/Working Mother Deferment Request
- Public Service Deferment Request
- Active duty in the Armed Forces
- Serving full-time Public Health Service
- Active duty in National Oceanic & Atmospheric Administration (NOAA)
- Serve in the PEACE CORPS
- Full-time paid volunteer in ACTION PROGRAMS
- Full-time volunteer in a TAX-EXEMPT ORGANIZATION
- Temporary Total Disability Deferment Request
- Unemployment Deferment Request
Forbearance is an arrangement to postpone or reduce your monthly payment amount for a limited and specific period of time in which you are charged interest. If you indicate a temporary inability, but willingness to pay the loan(s), you may ask for or be offered forbearance. You must apply and qualify for forbearance and the U.S. Department of Education must approve the request in order for a forbearance to be in effect.
There are several forbearance types:
- Americorps Forbearance Request
- General Forbearance Request
- Internship/Residency Forbearance Request
- Loan Debt Burden Forbearance Request
For details about deferment/forbearance options, visit www.dlservicer.ed.gov.
(Note you will need your federal Personal Identification Number (PIN) at access this site).
The Lender for the Federal Direct Loan Program is the Federal Government. Their contact information is:
U.S. Department of Education
Borrower Servicing Department
Direct Loan Servicing Department
P.O. Box 4609
Utica, New York 13504-4609