How to Apply for Student Loan Deferment

Student loan deferment can save you a lot of money and can make it possible for you to pay off your student loans quicker. By taking student loan deferments, you save on interest and alleviate the burden of a high monthly bill. However, you usually have to qualify for student loan deferment and there are different rules for federal student loan deferment and private loan deferment

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Student loans
• Tax Records
• Income statements

1. Find out what your student loan deferment policy is. You can do this by calling your student loan lender or looking at their information online. Most student loan companies will allow you to apply for student loan deferment if your income is below a certain level. You may also qualify for deferred student loans if you are teaching in a public school in a low income area, serving in the military, working for a not-for-profit or doing some other type of public service. If you are in school at least half time, in most cases you also automatically qualify for student loan deferment.

2. Decide which, if any, of the student loan deferment options you qualify for. Unlike forbearance, you can only get student loan deferment if you fit into one of the categories that is listed on the lenders website.

3. Once you determine that you believe you qualify for student loan deferment, find out what type of paperwork and documentation you need to demonstrate this to your lender. In most cases, you can download student loan deferment applications right from the lenders website.

4. Assemble the required documents to qualify for your student loan deferment. The types of documents vary depending on which type of student loan deferment you qualify for. If you are qualifying on the basis of a low income, you will need to provide your tax returns and perhaps your pay stubs. If you qualify because you are doing public service, you will need evidence such as proof that you enlisted in the military or proof that you are teaching for a qualified school.

5. Submit your application for student loan deferment and all of your required documentation to the lender. It can take 90 days for the student loan deferment process to be complete, and during this time you need to make sure you keep current on at least the minimum payments, because in most cases student loan deferment is not possible if you are in default.

Tips & Warnings

• Make sure you submit all required documentation to ensure your application for student loan deferment is not delayed
• If you do not qualify for student loan deferment with your lender, look into consolidating your loans with the U.S. Department of Education. There are different, and sometimes more generous, options for federal student loan deferment so you may be better off consolidating and then qualifying for a student loan deferment form your new lender.
• In most cases, when you qualify for a student loan deferment, the government subsidizes your loans so you receive a lower rate. Student loan deferment does not benefit you if you have unsubsidized loans, since you will still be charged the same interest rate as forbearance and forbearance is usually easier to qualify for.
• Deferred student loans still accrue at least some interest, and if you do not pay that minimum interest, it can be capitalized (added onto the principle balance). This can end up costing you more money in the long run.
• Student loan deferment only lasts for a certain number of months. Check with your lender to determine how much time you have available for student loan deferment.