Postponing Student Loan Payments

Student Loan One Hundred Dollar US Bill with cap and tassel.








Deferment and forbearance are common options for postponing student loan payments.  But use them wisely because, even though you aren’t required to make payments for a specified period, interest continues to accrue and debt balances continue to grow on most loans.  

What is a Deferment?

A deferment temporarily suspends required payments of a student loan. Interest will stop on subsidized federal loans, but will continue to accrue on unsubsidized and other loan types.

Deferment: As long as you are attending school at least half of the time (as defned by your school), loan payments can be deferred.  Most loan payments will resume six months afer you are no longer attending school at least half time.

Economic Deferment: Economic deferments generally fall into one of two categories: economic hardships and unemployment deferments. Students must demonstrate need through a statement of annual earnings.

Disability/Rehabilitation Deferment: You may qualify for a loan deferment if you are receiving rehabilitation training under an approved program, unable to work due to an injury or illness, or caring for a disabled spouse or dependent.

Family Leave Student Loan Deferment: A parental leave (or family leave) student loan deferment is available to borrowers that are pregnant or caring for a newborn or a newly adopted child.  

Military Deferment: You can obtain a military deferment if you are on active duty as a member of the Armed Forces, or when serving full time in the National Guard or Reserves.

What is a Forbearance?

A forbearance is similar to a deferment, however, it is typically easier to qualify for a forbearance.  Interest continues to accrue during the forbearance period.

Meet Eric, group manager responsible for managing GreenPath offices in Arizona, Florida and South Texas.  In 2005, he started out as a GreenPath counselor in New York City.  He later moved to Florida, where he continues to help people get out of debt.  "I like to see our clients gain confidence and hope as they work to overcome their financial concerns.  It's rewarding to see the positive impact we make in their lives."