Deferment and Forbearance

Deferments
Deferments allow you to temporarily postpone payment of your loan. Deferments are not automatic; you must apply and be approved.  Remember, it's important to continue making payments until you receive written notice of the deferment approval.  The most common reasons for deferment include:

• Return to school for at least half-time attendance
• Unemployment
• Economic hardship

Attached below are links to Federal and Alternative Loan Deferment applications.  It is important that you read the eligibility criteria prior to submittal to determine whether the deferment application you have selected meets your current situation.  Also thoroughly read the terms and conditions so that you are aware of any restrictions, including time limitations, which may be applicable.  In some cases, additional documentation including a Financial Analysis Form or IRS 4506T Request for Transcript of Tax Return may be required to document your financial situation.  Also, some deferments require a 3rd party certification be made on your application prior to processing.  

FFELP Deferment Options

• In-School (Student) Deferment Request  
• Education Related Deferment Request
• Unemployment Deferment Request
• Economic Hardship Deferment Request
• Military Deferment Request

ALTERNATIVE LOAN Deferment Options

• General Deferment 
• Medical Deferment

Supplemental Documentation

• Financial Analysis Form  
• 4506T Request for Transcript of Tax Return 

Forbearance
Forbearance is the temporary postponement or reduction of your monthly payment. Forbearances may be available if you do not qualify for a deferment.  Possible reasons for forbearance include:

• Financial difficulties
• A post-graduate or residency training program
• Your minimum monthly payment exceeds 20% of your total monthly income

Attached below is a link to the Federal Discretionary Forbearance Application.  Please read the terms and conditions of the application prior to submittal.  Note that subsequent documentation may be required to support your request for forbearance at the discretion of the lender.

FFELP Forbearance Options

• Discretionary Forbearance Application  
  

There are a number of additional forbearance options that may be available to FFELP borrowers.  Most of the options are very specific to a particular circumstance and may have conditional eligibility associated with the year your loan was taken out.  Please contact Customer Service and we would be happy to assist you in providing more information on these options. 

ALTERNATIVE LOAN  Forbearance Options

• Contact Customer Service and a specialist will assist you in determining your eligibility and the most appropriate option based on your individual situation.
  

During deferment and forbearance, interest may accrue on your loan(s) depending on your loan type. If interest accrues, it is added to the amount you owe, increasing the total cost of borrowing on your loan(s). For borrowers with subsidized Stafford loans, the federal government pays the accrued interest during qualified deferment.

If you allow your loan to default, you may lose access to these options, so it's very important to contact us as soon as you begin to experience difficulty in repayment.