Repayment and Deferments
Repayment
Repayment of Federal Stafford loans usually begins 6 months after graduating or dropping below 6 credit hours. Repayment of Federal PLUS loans usually begins within 60 days after the final disbursement.
To view information about your current repayment, View Your Loan History.
Deferments
A deferment allows you to delay your student loan payment temporarily due to such situations as unemployment, internship, residency or fellowship training. A deferment is an entitlement, which means that, as long as you request and qualify for one, your lender must grant it. See our deferment chart for more options.
You should continue to make your student loan payments on time until your lender contacts you with a decision on your request. Interest is paid by the government on your Stafford Subsidized Loan while your payment is deferred. However, you are responsible for paying interest on Stafford Unsubsidized Loans, even during periods of deferment.
To view information about your current deferment, View Your Loan History.
Forbearance
Forbearance allows you to postpone your loan payments temporarily for a specified period of time. These are generally granted at the lender's discretion, usually because the borrower is having difficulty making his or her monthly payment. Unlike a deferment where the government pays the interest for you on your Stafford Subsidized Loan, you are responsible for interest that will accrue while on a forbearance.
To view information about your current forbearance, View Your Loan History.
The above options are the only two ways to safely and effectively deal with repayment difficulties.
Failure to make loan payments without a deferment or forbearance will result in delinquency and/or default, both of which can seriously impact your
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Delinquency
This situation occurs when you are consistently late with you monthly student loan payment. If you are more than 60 days late, you will be reported to a national credit bureau.
Default
The most serious situation, this means you are 270 days late with your payment. It is assumed that you do not intend to repay your student loan.
The consequences of default include, but are not limited to:
- Wage garnishment
- Negative impact on your credit rating which will affect your ability to obtain future credit
- Having your entire principal and interest become due immediately
- Withholding of any federal and state income tax refunds due to you
- Ineligibility to receive any additional federal or state financial funds
