Student Loan Repayment

Federal student loan deferment is a period of time during which you can postpone your federal student loan payments.

Deferments are an entitlement that the holder/servicer must approve if you meet the requirements and provide the necessary documentation as specified in the promissory note. Loans must be in good standing to be placed in deferment.

Interest on Federal Stafford Loans is subsidized during periods of deferment for loans that were subsidized during the in-school period.

If you borrowed your first Federal Stafford Loan on or after July 1, 1993*, you are entitled to a deferment if you meet one of the following criteria:

• At least half-time enrollment as a student in a degree or certificate program at an eligible institution.
• Enrollment in an eligible graduate fellowship program.
• Enrollment in an approved rehabilitation training program for the disabled.
• Seeking to find (and unable to find) full-time employment (up to three years).
• Economic hardship (up to three years).

Download an eligibility chart or download forms here.

Medical/Dental Residents:

If you are participating in a medical or dental residency program, you may be eligible for a deferment during at least a portion of your residency period. The type of deferment depends on when you borrowed your first loan from the Federal Family Education Loan Program or one of its precursors and for which you still have an outstanding balance, as shown below:

• First-time borrower prior to July 1, 1993 - may be eligible for two years of an Internship/Residency Deferment
• First-time borrower on or after July 1, 1993 - may qualify for up to three years of an Economic Hardship Deferment

You must apply for the deferment by contacting the current loan holder/servicer of the loan(s) you want to defer. Eligibility for an Economic Hardship Deferment depends on your total monthly income and the amount of your monthly federal student loan payment. If you do not qualify for a deferment or have exhausted your deferment eligibility, you may be eligible for a Mandatory Forbearance, as described in the next section.

*Note: Different deferments may be available if at the time you obtained your loan, you had an outstanding balance on a Federal Stafford Loan or one of its precursors that was borrowed prior to July 1, 1993.

Forbearance is an agreement between the borrower and the holder/servicer of a loan that allows for:

• A temporary postponement of payments
• An extension of time for making payments
• The temporary acceptance of payments that are smaller than required by the repayment schedule

Typically, borrowers who qualify for forbearance are willing to make payments, but are financially unable to do so.

The lender is required to grant a mandatory forbearance on a Federal Stafford Loan if you satisfy any of the following conditions:

• You are participating in a medical or dental internship or residency program.
• Your monthly federal student loan payments are collectively equal to or greater than 20% of your total monthly income (mandatory forbearance available for up to three years).
• You are serving in a national service position for which you received a national service education award under the National and Community Service Trust Act of 1993.
• You are eligible for partial repayment of a loan under the Student Loan Repayment Programs administered by the Department of Defense under 10 U.S.C. 2171.
• You are eligible for loan forgiveness and the associated forbearance under the Teacher Loan Forgiveness Program.

Interest accrues during forbearance regardless of whether the loan was subsidized or not during school. This interest can be paid as it accrues or it can be capitalized at the end of the forbearance period.

You must reapply for forbearance at least once each year to re-certify your eligibility.

Contact your servicer for more information, to check your eligibility, to obtain the appropriate forms for forbearance, or to reapply.

Private student loan forbearance is an agreement between the borrower and the holder/servicer that allows for temporary postponement of payments, an extension of time for making payments, or the temporary acceptance of payments that are smaller than required by the repayment schedule.

Access Group private loan forbearances include a maximum of 12 months economic hardship forbearance in 6 month increments.

For more information or to find out if you qualify for these or any other private student loan forbearances, please contact your servicer.