If you cannot make a payment on your loan as scheduled, contact your servicer as soon as possible to help you avoid defaulting on your Direct Loans. You may be eligible for deferment or forberance, which are two options for postponing payments.
Deferment. There are different deferment options depending on your situation. You might be able to get a student loan deferment if you are
- undergoing cancer treatment;
- experiencing economic hardship;
- in a graduate fellowship program;
- enrolled in school at least half-time;
- performing qualifying military service;
- a post-active duty service member;
- a Parent PLUS borrower with student enrolled in school;
- enrolled in a rehabilitation training program; or
- unemployed.
Keep in mind, there are eligibility requirements for all the types of deferment, and you will generally have to submit documentation to qualify.
Forbearance If you’re not qualified for deferment, but cannot make your loan payments, you may qualify for forbearance. Under forbearance, your payments can be postponed or reduced for a specified period, or you may receive an extension on the time you have to repay your loans. In these cases, the interest will continue to be charged and be added to your principal balance, unless it is paid. You might be able to get a student loan forbearance if you are
- experiencing financial difficulties, such as medical expenses or changes in income;
- serving in AmeriCorps;
- performing service that would qualify you for partial loan forgiveness through the U.S. Department of Defense;
- working in a medical or dental internship or residency;
- serving in the National Guard;
- have student loan payments that are high in relation to your income; or
- working as a teacher to qualify for Teacher Loan Forgiveness.
Keep in mind, there are eligibility requirements for all the types of forbearance, and you will have to submit documentation to apply.