How does student loan deferment work?

A student loan deferment lets you stop making payments on your loan or reduce the amount you pay for up to three years, in most cases. During the deferment period, no interest accrues on federally subsidized loans because the government picks up the interest payments.

Is it smart to defer student loans?

Borrowers with lots of high-interest debt, such as credit cards or private student loans, should consider taking advantage of this period to defer federal student loans. On the other hand, borrowers who can afford payments on their federal loans have the opportunity to pay down the principal much more quickly.

How many credit hours do you need to defer student loans?

You are enrolled in school at least half-time–in which case you can almost always defer the payments on your student loans. Half-time status is defined as follows: Undergraduate: 6 credit hours of study in a term. Graduate: 3 credit hours of study in a term.

Do I qualify for deferment?

You are eligible for this deferment if you’re enrolled at least half-time at an eligible college or career school. If you’re a graduate or professional student who received a Direct PLUS Loan, you qualify for an additional six months of deferment after you cease to be enrolled at least half-time.

Can you defer student loans forever?

How long can you defer student loans? It is available for an indefinite period in many cases, except those of unemployment and economic hardship. For these two cases, you’re limited to three years. Deferment is not universally available for private student loans.

Does deferring student loans hurt credit?

A student loan deferral doesn’t directly impact your credit score since it occurs with the lender’s approval. Student loan deferrals can increase the age and the size of unpaid debt, which can hurt a credit score. Not getting a deferral until an account is delinquent or in default can also hurt a credit score.

How do I get a deferral on my student loan?

Request a Deferment. Most deferments are not automatic—you need to submit a request to your student loan servicer, often on a form. Also, for most deferments, you must provide your student loan servicer with documentation to show that you meet the eligibility requirements for the deferment.

How long can I defer my student loans?

How Long Can I Defer My Student Loans? The length of a student loan deferment depends on what type of deferment you’re applying for. If you’re applying for deferment based on financial hardship or unemployment, you can only defer your federal student loans for three years. Use your best judgment when determining the length of deferment.

When do you get an in school deferment?

An in-school deferment pauses your loan payments when you’re enrolled in an eligible college or career school at least half-time, including graduate school, as well as six months after you graduate or leave school. Those six months are also known as the student loan grace period.

How can I get a deferment on my Sallie Mae loan?

You can request a deferment for a Smart Option Student Loan ® or a Sallie Mae graduate student loan if you’re enrolled full-time or half-time. Your school will need to verify that you’re enrolled at least half-time. If your school is listed at studentclearinghouse.org, they’ll verify it electronically.