How to Apply for Student Loan Deferment: The Complete Guide

Struggling to make your student loan payments? You're not alone. Millions of borrowers face financial hardship, and student loan deferment offers a legal way to temporarily pause payments without damaging your credit. In this comprehensive guide, we'll walk you through exactly how to apply for deferment, what types are available, how long you can postpone payments, and the critical differences between deferment and forbearance that could save you thousands in interest.

What Is Student Loan Deferment?

Student loan deferment is a temporary pause or reduction of your federal student loan payments for specific qualifying circumstances. During deferment:

• You're not required to make monthly payments
• Subsidized loans: The government pays your interest (no balance growth)
• Unsubsidized loans: Interest continues accruing (balance grows)
• Your credit score is not affected (deferment is reported as "current")
• You remain in good standing with your loan servicer

Deferment vs. Forbearance: Know the Difference

Both options let you pause payments, but they're not the same:

Bottom line: If you qualify for deferment, choose it over forbearance—especially if you have subsidized loans. The government paying your interest can save you thousands.

Who Qualifies for Student Loan Deferment?

Federal student loans offer several types of deferment. Here's who qualifies:

1. In-School Deferment

Eligibility: Enrolled at least half-time in an eligible college, career school, or graduate program

Duration: While enrolled + 6 months after dropping below half-time

How to apply: Contact your loan servicer and provide enrollment verification from your school

Pro tip: If you have PLUS loans, you can also get deferment while the student is enrolled

2. Unemployment Deferment

Eligibility: Unemployed or unable to find full-time employment

Duration: Up to 3 years total

Requirements: Must be actively seeking work; may need to provide documentation

How to apply: Submit the Unemployment Deferment Request form to your servicer

3. Economic Hardship Deferment

Eligibility: You qualify if you:

• Receive federal or state public assistance (TANF, SSI, SNAP)
• Work full-time but earn 150% or less of the poverty line for your family size
• Serve in the Peace Corps

Duration: Up to 3 years total

How to apply: Submit the Economic Hardship Deferment Request with supporting documentation

4. Military Service Deferment

Eligibility: Active duty military service during war, military operation, or national emergency

Duration: Duration of active duty + 13 months post-service

How to apply: Submit military orders or a letter from your commanding officer

Bonus: Service members may qualify for interest rate reduction under the Servicemembers Civil Relief Act (SCRA)

5. Cancer Treatment Deferment

Eligibility: Borrower is undergoing cancer treatment

Duration: During treatment + 6 months after

How to apply: Submit documentation from your healthcare provider

Added benefit: Both subsidized and unsubsidized loans receive interest subsidy during this deferment

6. Parent PLUS Borrower Deferment

Eligibility: Parent borrowers while the dependent student is enrolled at least half-time

Duration: While student is enrolled + 6 months after

How to apply: Contact your servicer; often automatic if you request it

How to Apply for Student Loan Deferment: Step-by-Step

Step 1: Identify Your Loan Type

Log into StudentAid.gov to see your federal loan portfolio. Deferment is only available for:

• Direct Subsidized Loans
• Direct Unsubsidized Loans
• Direct PLUS Loans
• Federal Perkins Loans
• FFEL Program Loans (most still qualify)

Private loans: Contact your lender directly. Options vary widely.

Step 2: Determine Which Deferment You Qualify For

Review the eligibility criteria above and identify which deferment type matches your situation. Gather any required documentation:

• Enrollment verification (for in-school deferment)
• Unemployment benefit statements or job search documentation
• Proof of public assistance or income documentation
• Military orders
• Medical documentation (for cancer treatment deferment)

Step 3: Download the Correct Form

Get the deferment request form from:

• StudentAid.gov forms page
• Your loan servicer's website
• By calling your servicer directly

Common forms include:

• In-School Deferment Request
• Unemployment Deferment Request
• Economic Hardship Deferment Request
• Military Service Deferment Request
• Cancer Treatment Deferment Request

Step 4: Complete the Form

Fill out the form completely and accurately:

• Provide your full name, address, and Social Security Number
• Check the correct deferment type
• Have your school, employer, or certifying official complete their section
• Sign and date the form

Tip: Make a copy for your records before submitting.

Step 5: Submit to Your Loan Servicer

Send the form via:

• Fax: Fastest method; get confirmation receipt
• Mail: Certified mail with return receipt
• Online upload: If your servicer offers this option

Keep applying: Continue making payments until deferment is approved to avoid delinquency.

Step 6: Follow Up

Processing takes 2-4 weeks typically. After submitting:

• Check your status on StudentAid.gov
• Call your servicer if you haven't heard back in 3 weeks
• Confirm deferment start date once approved
• Verify interest subsidy is applied (for subsidized loans)

How Long Can You Defer Student Loans?

Maximum deferment periods vary by type:

Note: Some deferments count toward your lifetime limit. Once you max out a category (like 3 years for unemployment), you can't use it again.

What Happens to Interest During Deferment?

This is critical—understand how interest works:

Subsidized Federal Loans

• Government pays all interest during deferment
• Your balance stays the same
• Includes: Direct Subsidized Loans, Subsidized FFEL Loans, Perkins Loans (for certain deferments)

Unsubsidized Federal Loans

• Interest continues accruing
• Unpaid interest capitalizes (adds to principal) when deferment ends
• Includes: Direct Unsubsidized Loans, Unsubsidized FFEL Loans, PLUS Loans

Example: If you have $30,000 in unsubsidized loans at 6% interest and defer for 12 months:

• Interest accrued: $1,800
• New balance when deferment ends: $31,800
• Future interest now calculated on the higher balance

Alternatives to Deferment

Deferment isn't your only option. Consider these alternatives:

1. Income-Driven Repayment (IDR) Plans

Your payment is based on income and family size:

• SAVE Plan: 5-10% of discretionary income; remaining balance forgiven after 20-25 years
• PAYE Plan: 10% of discretionary income
• IBR Plan: 10-15% of discretionary income
• ICR Plan: 20% of discretionary income or fixed payment over 12 years

Benefit: Payments can be as low as $0/month, and you stay current on your loans.

2. Forbearance

If you don't qualify for deferment:

• General (Discretionary) Forbearance: Up to 12 months at a time, 36 months total
• Mandatory Forbearance: Required in certain situations (medical residency, national service)

Warning: All interest accrues to you, even on subsidized loans.

3. Loan Consolidation

Combine multiple federal loans into one:

• Simplifies payments (one bill)
• Can extend repayment term (lower monthly payment)
• May qualify for additional IDR plans or forgiveness

4. Student Loan Forgiveness Programs

You might qualify for forgiveness:

• Public Service Loan Forgiveness (PSLF): 120 qualifying payments while working for government or non-profit
• Teacher Loan Forgiveness: Up to $17,500 for teachers in low-income schools
• Income-Driven Forgiveness: Remaining balance forgiven after 20-25 years on IDR

Common Mistakes to Avoid

• ❌ Assuming deferment is automatic: You must apply and be approved
• ❌ Stopping payments before approval: Keep paying until deferment is confirmed
• ❌ Not understanding interest capitalization: Unsubsidized loan interest adds up
• ❌ Forgetting to reapply: Some deferments need annual renewal
• ❌ Ignoring private loans: Contact private lenders; some offer hardship options
• ❌ Not exploring IDR plans: Might be better than deferment long-term

Your Student Loan Deferment Checklist

• ☐ Log into StudentAid.gov and review your loan portfolio
• ☐ Identify which deferment type you qualify for
• ☐ Gather required documentation (enrollment, income, military orders, etc.)
• ☐ Download the correct deferment request form
• ☐ Complete the form accurately
• ☐ Make copies for your records
• ☐ Submit to your loan servicer (fax, mail, or upload)
• ☐ Continue making payments while awaiting approval
• ☐ Follow up after 2-3 weeks if no response
• ☐ Confirm deferment approval and start date
• ☐ Verify interest subsidy is applied (for subsidized loans)
• ☐ Set reminder to reapply if deferment has expiration
• ☐ Consider making interest payments on unsubsidized loans

Frequently Asked Questions

Q: Will deferment hurt my credit score?

A: No. Deferment is reported as "current" or "in deferment" status, not delinquent. Your credit score won't be negatively affected.

Q: Can I defer private student loans?

A: Rarely. Private lenders may offer forbearance, but terms vary. Contact your lender directly to ask about options.

Q: How many times can I use deferment?

A: Some deferments have cumulative limits (e.g., 3 years total for unemployment). Others (like in-school) can be used repeatedly as long as you qualify.

Q: Can I make payments during deferment?

A: Yes! Voluntary payments reduce principal and save on future interest, especially for unsubsidized loans.

Q: What if my deferment is denied?

A: You can appeal the decision or explore forbearance. Contact your servicer to understand why and what alternatives exist.

Q: Does deferment count toward loan forgiveness?

A: Generally no. Deferment months don't count toward the 120 payments required for PSLF or the 20-25 years for IDR forgiveness.

Final Thoughts: Deferment Is a Tool, Not a Solution

Student loan deferment can provide crucial breathing room during tough times. It's a legitimate tool to avoid default when you're facing unemployment, returning to school, serving in the military, or dealing with medical challenges.

But remember: deferment is temporary relief, not debt elimination. Interest may still accrue, and your loans will still be there when deferment ends. Use this time wisely—stabilize your finances, increase your income if possible, and plan for resuming payments.

If you're struggling long-term, consider income-driven repayment plans or forgiveness programs that offer permanent solutions rather than temporary pauses.