Deferments are periods of time when you can temporarily stop making payments on your federal student loans. If you’re in school or have recently graduated and need some breathing room, a deferment can help you avoid defaulting on your loans. In this post, we find out about what does deferment mean for student loans, how many credit hours to defer student loans, how to defer student loans when going back to school, student loan deferment extension, and federal student loan deferment.

You might not know that there are two types of deferments: one that lets you stop making payments while you’re in school, and one that lets you stop making payments while you’re working in public service after graduation.

You might also be eligible for an income-driven repayment plan if your income is low enough—but if not, it’s still possible to get a deferment based on your income level. Read on to know more about what does deferment mean for student loans, how many credit hours to defer student loans, how to defer student loans when going back to school, student loan deferment extension, and federal student loan deferment.

If you’re going back to school full-time and have federal student loans (and no other loans), then yes! You’ll be able to get a deferment while you’re enrolled in school full-time at least half-time (which means 12 credits per semester).

what does deferment mean for student loans

We begin with what does deferment mean for student loans, then how many credit hours to defer student loans, how to defer student loans when going back to school, student loan deferment extension, and federal student loan deferment.

Deferment and forbearance are two ways to postpone your student loan payments.

You may be eligible for a deferment or forbearance if you’re having trouble repaying your loans, but they’re not the same. With a loan deferment, you can temporarily stop making payments; with a loan forbearance, you can stop making payments or reduce your monthly payments for up to 12 months.

You can apply for these options by filling out the appropriate paperwork and submitting it to your lender.

how many credit hours to defer student loans

Now we review how many credit hours to defer student loans, how to defer student loans when going back to school, student loan deferment extension, and federal student loan deferment.

When you’re a student, it’s easy to get caught up in the excitement of your studies and forget about the financial part of things. But keep in mind that you’ve got a lot of expenses—and they don’t end when school does!

If you need to take some time off from school to work, travel, or do other things before beginning your career or continuing on with your education, you might consider deferment options for your loans.

The federal Subsidized, Unsubsidized, Parent (effective July 1, 2008), and Graduate PLUS loans all have deferment options on the principal balance. The student must remain at least half-time enrollment status (six credit hours undergraduate or five credit hours graduate).

how to defer student loans when going back to school

More details coming up on how to defer student loans when going back to school, student loan deferment extension, and federal student loan deferment.

When you’re going back to school, you may have to pay for your tuition and other expenses. But it can be tricky to figure out how to make ends meet when you’re also trying to pay off student loans.

Luckily, there are a few options that can help you defer your loans while you’re in school. Here’s what they are and how they work:

Your lender may put your loans on automatic deferment once you enroll at least half-time in a program. But to be on the safe side—or if you haven’t received a notice that your loans are in deferment, contact your educational institution and let them know that you want your loans to be deferred while you’re in school.

One way of doing this is by submitting an Employment Certification Form (ECF) for each semester of enrollment. Your lender will then automatically put your title IV loans into deferment until six months after graduation or withdrawal from school. You’ll need to submit an ECF every year until graduation or withdrawal from school.

student loan deferment extension

If you’re a student loan borrower who has been receiving deferment, you may be wondering whether or not your deferment will be extended through 2022.

The Truth About Deferment Extensions:

While the original deferment period was only expected to last several months, it has been extended six times since then, with the current extension lasting through Aug. 31, 2022.

So what does this mean for you? It’s worth noting that this is an extension on top of your existing deferment period—not a new deferment period. That means if you’d already been approved for a one-year deferment, then this new extension would extend that by an additional year (bringing it up to two years total). That’s because a student loan deferment is typically limited to three years total in most cases (although there are exceptions).

federal student loan deferment

When you’re going through a tough time, it can be hard to think about your student loan payments. You might even feel like you can’t afford to make them. But there are options available to help you out of this situation.

One of those options is student loan deferment.

When you defer your student loan payments, you don’t have to make a payment for a certain amount of time. This gives you time to get back on your feet and get things in order financially. However, if you don’t get back on track after the deferment period ends, it could mean trouble—and potentially even collections calls—down the road!

So how do we know what’s right for us? It depends on whether or not we qualify for deferment and how long we need it for. Let’s take a look at what student loan deferment is and how it works so that we can make an informed decision about whether or not it’s right for us!

how to qualify for student loan deferment

Student loan deferment allows you to pause your monthly payments for a predetermined time. While deferment policies can vary among private lenders, the federal government provides eight types of deferment you may qualify for.

Deferment can help you in times of financial hardship or during periods of medical treatment, military service and more. Here’s what to know about the different types of federal student loan deferment and how to qualify.

If you have federal student loans, you may be able to defer your student loans for any of the following reasons.

1. In-School Deferment

Your loans should be automatically deferred while you’re enrolled at least half time at an eligible college or vocational school, plus an additional six months after you graduate, leave school or drop below half-time status. If it’s not automatic, you can contact your loan servicer and request it.

2. Parent PLUS Borrower Deferment

As with in-school deferment for students, parents who take out PLUS loans to help their child can apply for deferment while their child remains enrolled at least half time at an eligible college or career school, as well as for six months after they graduate, leave school or drop below half-time status.

The primary difference between the two is that parent PLUS borrower deferment is not automatic.

3. Economic Hardship Deferment

You may be eligible for deferment if you’re receiving a means-tested government benefit, such as welfare; you work full time but have earnings below 150% of the federal poverty guideline for your family size and state of residence; or you’re serving in the Peace Corps.

With this option, you can receive a deferment of payments for up to three years.

4. Unemployment Deferment

If you’re on unemployment benefits or you’re looking for a job without success, you may be eligible for up to three years of deferment.

5. Graduate Fellowship Deferment

If you enroll in an approved graduate fellowship program—typically for doctoral students, but some master’s degree students may be eligible—you may qualify for deferment while you’re in the program.

6. Rehabilitation Training Program Deferment

You may be eligible for deferred payments while you are enrolled in an approved rehabilitation training program for vocational, drug abuse, mental health or alcohol abuse treatment.

7. Military Service and Post-Active-Duty Student Deferment

You can qualify while you are on active-duty military service in connection with a war, military operation or national emergency, or if you’ve recently completed qualifying active-duty service.

Deferment lasts for the 13-month period following the conclusion of that service and any applicable grace period, or until you return to college or career school on at least a half-time basis, whichever is earlier.

8. Cancer Treatment Deferment

You can apply for this type of deferment if you’re currently undergoing cancer treatment. It lasts for the duration of your treatment plus six months after it ends.

How to Request Student Loan Deferment

While each type of federal loan deferment has its own form, the process is relatively simple and uniform across all types.

1. Visit the Federal Student Aid website and select the form for the type of deferment you want to request.
2. Fill out your personal information and review the eligibility section to ensure that you qualify.
3. Provide any additional information required in the deferment application, then sign and date it.
4. Submit the request, along with supporting documentation, directly to your student loan servicer.

Once you submit the request, your loan servicer may ask for additional documentation before making a decision.

Note that if you have private student loans, you’ll need to contact your lender to learn about eligibility and the application process.

Alternatives to Student Loan Deferment

While federal loan deferment can be helpful, it’s not always available. And in some cases, it may not be the best option for you. Here are some potential alternatives to consider:

• Forbearance: If you’re dealing with financial difficulties, medical bills, a change in unemployment or other challenges, your loan servicer may grant you forbearance. Additionally, loan servicers are required to grant forbearance if you’re in the AmeriCorps, on the Department of Defense student loan repayment program, in a medical or dental internship or residency, on National Guard duty, working toward Teacher Loan Forgiveness, or your monthly payments are 20% or more of your gross income.
• Student loan forgiveness: When the application is available, be sure to apply for student loan forgiveness offered by the Biden administration. You can learn more and find out about when the application is available on the Federal Student Aid website. You can also look into other student loan forgiveness and repayment assistance programs to see if you qualify.
• Income-driven repayment: If you’re struggling with monthly payments but don’t necessarily need deferment or forbearance, you may consider applying for income-driven repayment. There are currently four options from which you can choose. Depending on which one you get, your monthly payments may be reduced to 10% to 20% of your discretionary income, and your repayment term will be extended to 20 or 25 years. Once that repayment period has ended, the remainder of your debt will be forgiven.
• Refinancing: Refinancing isn’t always the best choice with federal loans, but if you want a lower monthly payment and a lower interest rate and don’t anticipate needing any other federal loan benefits, it could be worth a try. Take your time to shop around and compare multiple student loan refinance companies to find the right fit.

Whatever you do, it’s crucial that you take your time to research and carefully consider all of your options before you decide which path to take.

The Bottom Line

When you’re having trouble making your payments temporarily, deferment could be worth considering, but it’s also important to consider your other options before submitting your request.

The important thing is that you take whatever steps necessary to avoid missing payments, as that can have a devastating impact on your credit score. During this process, it’s a good idea to monitor your credit regularly to keep an eye on your credit score and address any issues as they arise.