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Your deferment options may vary, depending on what kind of loans you have.
Stafford and Perkins loans:
Principal and interest payments may be deferred while the borrower is:
- Attending school at least halftime.
- Unemployed (up to three years).
- Studying in an approved graduate fellowship or rehabilitation program for the disabled.
- Experiencing economic hardship (up to three years).
Parent
Loan for Undergraduate Students (PLUS)
PLUS deferment options are based on the parent borrower's eligibility--for example, if the parent is
unemployed, not the student on whose behalf the parent took out the loan. Principal and interest payments may be deferred while the parent borrower is:
- Attending school at least halftime.
- Unemployed (up to three years).
- Studying in an approved graduate fellowship or rehabilitation program for the disabled.
- Experiencing economic hardship (up to three years).
Alternative Loan:
Principal and interest payments may be deferred while the borrower
is continuously enrolled up to a maximum of 48 months.
Additional deferments are available based on your grade
level, program of study and specific loan program.
Read your application and promissory note carefully for
details. You may also want to consider a forbearance
for your alternative loan.
Forbearance:
If the
alternative loan borrower is unable to make regular principal and interest payments, the
lender may accept interest-only payments or the student may be
able to defer payments with a capitalized interest forbearance.
A forbearance may be granted at the lender's discretion, but only in accordance with
preset guidelines. If at any time during the repayment period a student is unable
to make a required payment, they should immediately contact the servicer to seek advice
on obtaining a temporary cessation of payments. A forbearance will grant an extension of the
principal and interest of the loan. Interest charges will be capitalized (added onto the
principal of the loan) once the student begins repaying again.
Forbearance may be granted for the following reasons:
- Unemployment
- Partial Disability
- Other documented hardship
Eligibility for interest subsidy during deferment:
Consolidation loan applications received on or after January
1, 1993, and before August 10, 1993. Applications
received on or after August 10, 1993, and before October 7,
1998, if the consolidation loan includes only subsidized
Federal Stafford Loans, subsidized Federal Consolidation
Loans or Federally Insured Student Loans. Applications
received on or after October 7, 1998, on the portion of the
consolidation loan that represents subsidized Federal
Stafford, subsidized Federal Consolidation Loans or
Federally Insured Student Loans.
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