Introduction

The process of applying for a loan deferment varies from lender to lender. In general, however, the steps are similar, and they are outlined below:

What is a loan deferment?

A loan deferment is a postponement of payments on a loan. It’s usually temporary and granted by the lender but can be permanent if you qualify for one of the government-run programs that forgive student loans after a certain period (like Public Service Loan Forgiveness).

Loan deferments are granted for specific reasons: medical problems, military service, or unemployment. Suspensions can also be given if you’re enrolled in school full-time or working toward an advanced degree.

Some eligible loans for deferment include federal Perkins, subsidized Stafford, and Direct Subsidized Loans. Loans not qualifying for deferment include unsubsidized Stafford and Direct Unsubsidized Loans, PLUS loans, and private student loans. If you have a mix of eligible and ineligible loans, the total amount will be considered when determining whether you qualify for a deferment.

Loan deferment eligibility requirements

There are four types of loan deferments:

• Financial hardship. If you experience a financial problem, such as unemployment or medical expenses, your lender may postpone repayment of your student loans. You’ll need to provide documentation showing that your situation qualifies for this type of deferment (for example, if it’s been over 60 days since your last payment).
• Unemployment. Suppose you’re unemployed and have exhausted all other sources of support (such as extended unemployment benefits). In that case, you may qualify for deferment on direct federal loans only after 12 months without employment income or ten consecutive months with less than half-time employment while pursuing an educational program at an eligible institution. The lender will require proof of eligibility before approving any request made by an applicant who wishes to utilize this option, granted automatically unless otherwise specified by those responsible for making such decisions about whether someone meets their requirements for receiving financial aid under these circumstances!

Loan deferment application forms

You can find the loan deferment application forms for your type of deferment online.

There is a loan deferment application form for each type of deferment:

• Unemployment Deferment Application Form (PDF) – For individuals who qualify as unemployed and have used up their grace period.
• Military Deferment Application Form (PDF) – For those serving in the military or National Guard.
• Borrower Defense to Repayment Deferment Application Form (PDF) – For borrowers who believe they were victims of an institution’s misconduct while attending school and/or applying for federal student loans/grants, such as fraud or misrepresentation by that institution or its affiliates; unauthorized collection activity by third parties hired by them; identity theft committed against applicants through phishing scams etc., where applicable only after all other avenues have been exhausted first before submitting this form since there are limitations due to complexity involved with processing these types’ requests compared with different types listed above which may make them ineligible even though they meet all requirements outlined heretofore due process standards set forth federally mandated laws governing student lending institutions such as federal regulations pertaining specifically Section 523(a)(8)(B)(ii)(II), Title 34 Code Section 1087e-1(a)(2); 34 CFR 668(b)(2), 668(c), 668(d); 20 USCS 1087e-1(a).

Required documentation for loan deferment application

You’ll need to provide your lender with documentation of your income, expenses, assets, and employment status. This can include:

• Proof of your income (pay stubs or W-2 forms)
• Documentation of any assets that you have (bank statements, stock certificates)
• Any additional information about your expenses (medical bills)

Proof of employment (pay stubs, W-2 forms) Proof of any additional income (alimony or child support)

Submitting a loan deferment over the phone or online

To submit a deferment over the phone or online, you will need:

• The student status of each borrower (if they are not currently enrolled in school). This can be obtained from the National Student Loan Data System (NSLDS). If you cannot access NSLDS, contact your servicer for assistance.
• A list of all federal loans held by each borrower requesting a deferment. This includes Direct Loans and FFEL Program loans held by guaranty agencies or loan servicers on behalf of borrowers who consolidated their loans into one account with them.*

Mailing in a loan deferment application

• Address:

Loan Deferment Applications should be mailed to the following address:

• Required documentation:

To receive a deferment, you must provide documentation of your circumstances. The type of documentation required depends on your individual situation. For example, suppose you are requesting a postponement because of unemployment or disability. In that case, you will need proof from the Social Security Administration (SSA) that you are eligible for benefits and/or evidence that your health prevents work. Suppose you request a deferment for other reasons, such as caring for dependents or attending school full-time (after exhausting all other options). We require additional information about these circumstances to evaluate whether they qualify under our policy guidelines.* Required form: You must access Adobe Acrobat Reader software to complete our online application form correctly; please visit Adobe’s website if necessary.* Required information: In addition to providing us with all required documentation listed above, please include any supporting letters that may help explain why we should grant this request

Faxing your loan deferment application to your lender

Fax your loan deferment application to your lender.

Send a cover letter with your faxed deferment application, explaining why and why you are applying for a deferment.

The lender will review your application and send you a decision in writing. If your application is approved, the lender will notify you when the deferment begins and ends.

Lenders usually require you to send a copy of the deferment application with your monthly mortgage payment. If you are on an interest-only loan, you will need to submit proof that the property is occupied by you or your family.

There are different types of loan deferments.

There are different types of loan deferments.

• Unemployment deferment: If you are unemployed, the government may approve your request for a six-month extension on repaying your student loans. To qualify, you must have been employed by an eligible employer (or been self-employed) during the last nine months, be actively seeking work, and meet other criteria such as income and debt obligations. If approved, interest won’t accrue during this period. Still, it will continue to build up until the day before your grace period ends or until you enter into an income-driven repayment plan (IDR), whichever happens first. If your application isn’t approved in time, apply anyway because options may be available later when circumstances change (e.,g., getting another job).

Conclusion

The loan deferment application process can be confusing and time-consuming, but avoiding the negative consequences of defaulting on your loans is worth it. If you need help determining whether you qualify for a deferment or other forbearance, contact your lender immediately.