deferments

If your situation meets specific criteria set by the U.S. Department of Education, you are entitled to defer your federal education loan payments for a period of time. Deferment can be an effective way to help you successfully manage your budget and protect your credit rating during certain situations.

Federal Stafford and other types of subsidized loans:

• You do not owe interest during the deferment period.

This means that you pay the same amount in the long run as if you had not postponed payments, as long as you are current on your payments when you enter the deferment and you resume a regular repayment schedule after the deferment.

Unsubsidized Stafford, PLUS, and other types of unsubsidized loans:

• You owe interest even during a deferment.
• You are not required to make any payments during the deferment.
• Interest that you postpone is added to the principal balance of your loan when the deferment ends.

This means you pay more in the long run than if you had not postponed payments. Your payment amount may increase following the deferment to account for the additional interest.

Perkins loans:

• You do not owe interest during the deferment period.
• In some cases, you may receive forgiveness (cancellation) on some or all of your Perkins loan following deferment.

Click here to go to the U.S. Department of Education’s student information on deferment and cancellation provisions for Perkins Loans.

VSAC Alternative, HEAL, and other loan types:

• These loans also have options to help with repayment.
• Contact us for more information.