Repayment Process   |   Deferment & Forebearance   |   Loan Consolidation
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If you qualify, you can receive deferment of payments. If you foresee a change that will temporarily affect your ability to make your payments, contact you lender immediately to see if you qualify for a deferment or forbearance. Letting your lender know your situation can help prevent your loan from becoming delinquent or going into default.

A deferment allows you to postpone your payment (principal, and in some cases, interest) for a certain period of time for specific reasons recognized by the federal government.

Forbearance allows you to temporarily postpone or reduce your principal payments for periods of up to one year at a time. Payment of the interest which accrues during a forbearance is your responsibility. You have the option to either pay the interest on a monthly or quarterly basis, or have it accrued and be capitalized into the balance of the loan.

Deferments
Many situations allow you to defer your loan payments. Your eligibility for a specific deferment is determined by the date your first Federal Family Education Loan Program (FFELP) loan was disbursed. The most common reasons borrowers receive a deferment include:

• returning to school (Education Related Deferments)


• being unable to find employment of at least 30 hours per week, even though the borrower is making a conscientious effort to find work (Hardship Deferments).

If your first subsidized or unsubsidized Federal Stafford or Federal SLS loan was disbursed before July 1, 1993, service in a volunteer organization may qualify you for a deferment. You will need to complete the borrower's section of a deferment form, specific to the type of deferment you are requesting. Your lender or holder will provide you with the correct form. You may also be required to provide supporting documentation and/or certification, depending upon the deferment you are requesting.

If you are requesting an in-school (study) deferment and applying for a new student loan for the same period of enrollment, you may request an in-school deferment on the Application and Promissory Note.

If you are currently making student loan payments, continue to do so until your deferment request is approved by your lender.

If you become too delinquent in your scheduled payments, you will default and lose the option to defer future payments. In order to receive the deferment you may be required to provide supporting documentation and/or certification, depending upon the specific deferment you are requesting.

Your account status affects your deferment eligibility.

• Loans in default (270 days or more past due) are not eligible for deferment. In addition, your credit history will be damaged, and you will not be able to obtain credit for things such as a car or a home in the future.


• Delinquent accounts (less than 270 days past due) may still be eligible for deferment. If the lender grants deferment, your account can be brought current by the lender capitalizing the unpaid interest to the principal balance of your loan.

Forbearance
In the event you do not qualify for a deferment, you can request forbearance. Forbearance allows you to temporarily postpone or reduce your principal payments for periods of up to one year at a time.

There are four types of forbearance: discretionary, administrative, mandatory and mandatory administrative. Contact your lender to discuss the type of forbearance for which you may be considered.

Deferment/Forbearance Charts

Education Related Deferments	Maximum Time Limit	First loan was on or after 7/1/93		First loan was on or after 7/1/87 but before 7/1/93		First loan was prior to 7/1/87
		Stafford/ SLS *	Consolid- ation **	Stafford/ SLS *	Consolid- ation **	Stafford/ SLS *	Consolid- ation **
In-school full time	no time limit
In-school half time and not receiving a new loan	no time limit
In-school half time and receiving a new loan	no time limit
Internship/ Residency	24 months
Graduate Fellowship	no time limit
Rehabilitation Training	no time limit
Full-Time teacher in a shortage area	36 months

* For Federal Stafford and SLS loans, this date corresponds to when your first loan was disbursed.

** For Federal Consolidation loans, this date corresponds to when your first loans were consolidated. Certain Federal Consolidation loans are eligible for the federal government to pay the interest during a deferment. Check with your lender for more information.

Hardship Deferments	Maximum Time Limit	First loan was on or after 7/1/93		First loan was on or after 7/1/87 but before 7/1/93		First loan was prior to 7/1/87
		Stafford/ SLS *	Consolid- ation **	Stafford/ SLS *	Consolid- ation **	Stafford/ SLS *	Consolid- ation **
Un- employment	24 months
	36 months
Economic Hardship	36 months
Temporary Total Disability	36 months
Parental Leave	6 months
Mothers Entering/ Re-entering Work Force	12 months

* For Federal Stafford and SLS loans, this date corresponds to when your first loan was disbursed.

** For Federal Consolidation loans, this date corresponds to when your first loans were consolidated. Certain Federal Consolidation loans are eligible for the federal government to pay the interest during a deferment. Check with your lender for more information.

Service Related Deferments	Maximum Time Limit	First loan was on or after 7/1/93		First loan was on or after 7/1/87 but before 7/1/93		First loan was prior to 7/1/87
		Stafford/ SLS *	Consolid- ation **	Stafford/ SLS *	Consolid- ation **	Stafford/ SLS *	Consolid- ation **
Active Duty Armed Forces	36 months
Active Duty NOAAC	36 months
Active Duty Public Health Service	36 months
Volunteer Peace Corps	24 months
Volunteer Action Program	36 months
Volunteer Tax Exempt Program	36 months

*For Federal Stafford and SLS loans, this date corresponds to when your first loan was disbursed.

**For Federal Consolidation loans, this date corresponds to when your first loans were consolidated. Certain Federal Consolidation loans are eligible for the federal government to pay the interest during a deferment. Check with your lender for more information.