The Benefits of Federal Student Loan Deferment

The benefits of federal student loan deferment can come at a time of real financial need in your life. A federal loan deferment means you may put off for a specified period of time repayment of the balance of your federal loan.

Deferred Student Loans

If you hold a federal student loan and fall in one of the categories below, you may apply for a deferment.

  • Economic Hardship - This covers those earning below certain minimums or those receiving state or federal assistance.

  • Education-Related Deferment - This applies to those in qualified graduate programs or still enrolled in a qualified school program.

  • Work-Related - Those serving in the military or in the public service sector, or who are unemployed, may apply for deferment.

  • Life Condition - Those who are pregnant or on parental leave, or those suffering from a temporary total disability may apply.

  • Other Programs - You may apply if you are already borrowing as a parent of a dependent eligible student through the Parent Loan for Undergraduate Student or PLUS Loan program.
Repaying Deferred Loans

The benefits of federal loan deferment do not include loan forgiveness. In other words, you remain liable to repay the balance of a deferred loan. During the deferment period, the government pays interest on subsidized Direct Stafford student loans. You are still responsible for the balance. You also remain responsible for the interest on all other types of federal loans.

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