Direct Loans Deferment
You can receive a Direct Loans deferment for certain defined periods if you’re experiencing a financial hardship. A deferment is a temporary suspension of loan payments for specific situations such as re-enrollment in school, unemployment, or economic hardship. You don’t have to pay interest on the loan during deferment if you have a Direct Subsidized Stafford Loan or a Federal Perkins Loan. If you have a Direct Unsubsidized Stafford Loan, you’re responsible for the interest during deferment. If you don’t pay the interest as it accrues (accumulates), it will be capitalized (added to the loan principal), and the amount you have to pay in the future will be higher.
In order to become eligible for a direct loan deferment, you have to complete a deferment application and submit to your lender. You must also continue to make payments until you’ve been notified your deferment has been granted. If you do decide not to make your direct loan payments before being notified then you risk the chance of becoming delinquent or going into default on your loan. Your credit history will be negatively impacted if you become delinquent on your Direct Loan repayments
You may qualify for a deferment while you are:
Enrolled at least half time in an eligible postsecondary school or studying full time in a graduate fellowship program or an approved disability rehabilitation program.
Unemployed or meet the economic hardship rules (limited to 3 years).
Students may also qualify for a Direct Loan Deferment if they are active military duty or post active military duty.
Enrolled at least half time in an eligible postsecondary school or studying full time in a graduate fellowship program or an approved disability rehabilitation program.
Unemployed or meet the economic hardship rules (limited to 3 years).
Students may also qualify for a Direct Loan Deferment if they are active military duty or post active military duty.
Military Service Deferment
An active duty military deferment is available to Direct Loan and Perkins Loan borrowers who are called to active duty during a war or other military operation or national emergency. This deferment is available while the borrower is serving on active duty during a war or other military operation or national emergency or performing qualifying National Guard duty during a war or other military operation or national emergency and, if the borrower was serving on or after Oct. 1, 2007, for an additional 180-day period following the demobilization date for the qualifying service.
Borrowers must complete and submit the Active / Post Active Duty Military Service Deferment Application. This application must be fully completed and submitted to your loan provider.
Post-Active Duty Student Deferment
A Direct Loan or Perkins Loan borrower who is a member of the National Guard or other reserve component of the U.S. Armed Forces (current or retired) and is called or ordered to active duty while enrolled at least half-time at an eligible school, or within six months of having been enrolled at least half-time, is eligible for a deferment during the 13 months following the conclusion of the active duty service, or until the borrower returns to enrolled student status on at least a half-time basis, whichever is earlier.
An active duty military deferment is available to Direct Loan and Perkins Loan borrowers who are called to active duty during a war or other military operation or national emergency. This deferment is available while the borrower is serving on active duty during a war or other military operation or national emergency or performing qualifying National Guard duty during a war or other military operation or national emergency and, if the borrower was serving on or after Oct. 1, 2007, for an additional 180-day period following the demobilization date for the qualifying service.
Borrowers must complete and submit the Active / Post Active Duty Military Service Deferment Application. This application must be fully completed and submitted to your loan provider.
Post-Active Duty Student Deferment
A Direct Loan or Perkins Loan borrower who is a member of the National Guard or other reserve component of the U.S. Armed Forces (current or retired) and is called or ordered to active duty while enrolled at least half-time at an eligible school, or within six months of having been enrolled at least half-time, is eligible for a deferment during the 13 months following the conclusion of the active duty service, or until the borrower returns to enrolled student status on at least a half-time basis, whichever is earlier.
Economic Hardship Deferment
A Direct Loan or Federal Perkins Loan borrower may qualify for an economic hardship deferment for a maximum of three years if the borrower is experiencing economic hardship according to federal regulations.
If you've gone back to school and your loan servicer receives enrollment information that shows you're enrolled at least half time, it will automatically put your loans into deferment and notify you. You have the option of cancelling the deferment and continuing to make payments on your loan.
Students that are currently in default on their loan are not eligible to receive a Direct Loan deferment.
Although you’re asked to choose a repayment plan when you first begin repayment, you might want to switch repayment plans later if a different plan would work better for your current financial situation. Under the Federal Family Education Loan Program, you can change repayment plans once a year. Under the Federal Direct Student Loan Program, you can change plans any time as long as the maximum repayment period under your new plan is longer than the time your Direct Loans have already been in repayment.
Direct Loan Grace Period
After you graduate, leave school, or drop below half-time enrollment, you have a period of time before you have to begin repayment. This "grace period" will be
§ Six months for a Federal Stafford Loan (Direct Loan Program or Federal Family Education Loan (FFEL) Program).
§ Nine months for Federal Perkins Loans.
PLUS Borrowers Grace Period
The repayment period for a Direct PLUS Loan begins at the time the PLUS loan is fully disbursed, and the first payment is due within 60 days after the final disbursement. However, a graduate student PLUS Loan borrower (as well as a parent PLUS borrower who is also a student) can defer repayment while the borrower is enrolled at least half-time, and, for PLUS loans first disbursed on or after July 1, 2008, for an additional six months after the borrower is no longer enrolled at least half-time. Interest that accrues during these periods will be capitalized if not paid by the borrower during the deferment.
Parent PLUS Loan borrowers whose loans were first disbursed on or after July 1, 2008, may choose to have repayment deferred while the student for whom the parent borrowed is enrolled at least half-time and for an additional six months after that student is no longer enrolled at least half-time. Interest that accrues during these periods will be capitalized if not paid by the parent during the deferment.
As you can see there are many different types of Direct Loan Deferments available to borrowers if they are unable to repay their Direct Loan due to unexpected events or financial situation. Borrowers interested in a Direct Loan Deferment should contact their Direct Loan Lender to discuss to many different options available. It’s important to contact your lender before an actual payment is missed or you may forfeit your opportunity into the Direct Loan deferment program.
Other Useful Financial Aid Sites: Direct Loan | Direct Loans Forbearance | Direct Loan Repayment | Direct Loan Forgiveness | Direct Loan Application | Federal Direct Loans | Stafford Loan |
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A Direct Loan or Federal Perkins Loan borrower may qualify for an economic hardship deferment for a maximum of three years if the borrower is experiencing economic hardship according to federal regulations.
If you've gone back to school and your loan servicer receives enrollment information that shows you're enrolled at least half time, it will automatically put your loans into deferment and notify you. You have the option of cancelling the deferment and continuing to make payments on your loan.
Students that are currently in default on their loan are not eligible to receive a Direct Loan deferment.
Although you’re asked to choose a repayment plan when you first begin repayment, you might want to switch repayment plans later if a different plan would work better for your current financial situation. Under the Federal Family Education Loan Program, you can change repayment plans once a year. Under the Federal Direct Student Loan Program, you can change plans any time as long as the maximum repayment period under your new plan is longer than the time your Direct Loans have already been in repayment.
Direct Loan Grace Period
After you graduate, leave school, or drop below half-time enrollment, you have a period of time before you have to begin repayment. This "grace period" will be
§ Six months for a Federal Stafford Loan (Direct Loan Program or Federal Family Education Loan (FFEL) Program).
§ Nine months for Federal Perkins Loans.
PLUS Borrowers Grace Period
The repayment period for a Direct PLUS Loan begins at the time the PLUS loan is fully disbursed, and the first payment is due within 60 days after the final disbursement. However, a graduate student PLUS Loan borrower (as well as a parent PLUS borrower who is also a student) can defer repayment while the borrower is enrolled at least half-time, and, for PLUS loans first disbursed on or after July 1, 2008, for an additional six months after the borrower is no longer enrolled at least half-time. Interest that accrues during these periods will be capitalized if not paid by the borrower during the deferment.
Parent PLUS Loan borrowers whose loans were first disbursed on or after July 1, 2008, may choose to have repayment deferred while the student for whom the parent borrowed is enrolled at least half-time and for an additional six months after that student is no longer enrolled at least half-time. Interest that accrues during these periods will be capitalized if not paid by the parent during the deferment.
As you can see there are many different types of Direct Loan Deferments available to borrowers if they are unable to repay their Direct Loan due to unexpected events or financial situation. Borrowers interested in a Direct Loan Deferment should contact their Direct Loan Lender to discuss to many different options available. It’s important to contact your lender before an actual payment is missed or you may forfeit your opportunity into the Direct Loan deferment program.
Other Useful Financial Aid Sites: Direct Loan | Direct Loans Forbearance | Direct Loan Repayment | Direct Loan Forgiveness | Direct Loan Application | Federal Direct Loans | Stafford Loan |
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