specific circumstances
For Federal Perkins Loans, subsidized FFEL Stafford Loans,
and subsidized Direct Stafford Loans, you don’t have to pay
principal or interest during deferment.
For unsubsidized FFEL Stafford Loans, unsubsidized Direct
Stafford Loans,
FFEL PLUS Loans, and Direct PLUS Loans, you can postpone
paying principal, but you (or your parents, for PLUS Loans)
are responsible for the interest. You can pay the interest
during the deferment period, or the loan holder can
capitalize the interest when the deferment ends. Remember
that capitalization will increase the loan balance.
automatically; you must formally request one through the
procedures your loan holder has established. Often, you
need to complete a deferment form. You’ll need to provide
documentation showing you’re qualified for the deferment
you’re applying for. Make sure all your paperwork is in order
and make sure the loan holder receives it.
Here’s one of the most important things to remember: You
must continue to make payments on the loan until you’ve
been notified the deferment has been approved. Sometimes
borrowers apply for deferment and don’t hear anything
back and assume things are fine. Or, as soon as they send a
deferment form and their paperwork, they think they can
immediately stop payment. Even if the paperwork is received
without any
problem, it takes a while to process. So, don’t skip the next
payment when it’s due. First, check with the loan holder. If
your deferment has not been processed, make your
payment! You might go into default otherwise. You can’t get
any deferment on a defaulted loan.
