Pause Payments: Deferment

By: Bryan Lee, UHEAA

Pause, time out, boy, pillow

Eligibility for deferment depends on your situation and the terms of your student loan. Deferment may allow you to temporarily postpone your monthly payments. Make sure to find out if your lender requires you to pay interest during the postponed period.

If you have a Federal Perkins Loan, Direct Subsidized loan, and/or a Subsidized Federal Stafford Loan the government may pay your interest during your deferment period. However, the government does not pay the interest on unsubsidized loans or on any PLUS loans.

With private student loans, the borrower is usually responsible for paying interest during their deferment period.


Here are some common  situations in which you may qualify for deferment:

  • In-school
  • Graduate fellowship
  • Internship or residency
  • Economic hardship
  • Unemployment
  • Active duty military service

Private loan lenders have their own conditions for eligibility, so make sure to pay close attention to the lender’s deferment conditions. Read your loan agreement carefully to make sure you’re aware of deferment conditions and options. If you have a federal student loan you can find a list of situations that may make you eligible for deferment.

Before you apply for a deferment remember to contact your lender to confirm your eligibility.

If you’re having difficulty making payments, contact your servicer or lender for more information.