What deferment means and when you can use it

Deferment is a way to pause your federal student loan payments for a set period — usually six months to three years — without going into default. During deferment, you stop making monthly payments, but interest still accrues on most loan types. When the deferment period ends, you resume regular payments, and the accrued interest gets added to your balance.

Deferment is different from forbearance, which is a shorter pause (usually three to six months) that also stops payments but is easier to get. Deferment requires you to meet specific conditions set by the Department of Education, while forbearance is more flexible but typically lasts less time.

Federal student loans are the only loans that have deferment options. Private student loans do not have deferment programs — if you need to pause payments on a private loan, you must contact your lender directly to negotiate a temporary arrangement.

Key Takeaways

  • Deferment pauses your federal student loan payments for six months to three years, but interest continues to accrue on most loan types except subsidized loans.
  • You must meet specific conditions to defer — such as being in school, unemployed, or facing economic hardship — and you have to request deferment from your loan servicer.
  • Your loan servicer is the company that collects your payments, and you can find out who it is by logging into StudentLoans.gov or calling 1-800-4-FED-AID.
  • Forbearance is a shorter alternative that does not require you to prove hardship, but it lasts only three to six months and also accrues interest.
  • If you are in default, deferment can stop collection efforts, but you must first bring your account current or work out a payment plan with your servicer.

The six types of deferment for federal loans

The Department of Education recognizes six categories of deferment. Each one requires different proof, and not all loan types may have access to for every category.

In-school deferment is for borrowers enrolled at least half-time in an accredited school. You need to provide proof of enrollment — usually a letter from the school's registrar or a copy of your course schedule. This deferment lasts as long as you are enrolled, plus six months after you graduate or drop below half-time status.

Economic hardship deferment is for borrowers facing temporary financial difficulty — job loss, reduced income, or unexpected expenses. You must show that your monthly loan payment exceeds 20 percent of your gross monthly income. This deferment lasts up to three years, and you can request it more than once in your lifetime.

Unemployment deferment is for borrowers who are unemployed and looking for work. You need to provide proof from your state unemployment office or a letter stating you are actively seeking employment. This deferment lasts up to three years total.

Graduate fellowship deferment is for borrowers pursuing a graduate degree through a fellowship program. You need proof of enrollment in the fellowship.

Parental leave deferment is for borrowers who have recently given birth or adopted a child. This deferment lasts up to 12 months and requires a birth certificate or adoption papers.

Military service deferment is for active-duty service members. You need proof of active-duty status from your branch of service.

How to request deferment from your loan servicer

Your loan servicer is the company that collects your payments and manages your account. It is not the Department of Education, and it is not your school. To find your servicer, log into StudentLoans.gov with your FSA ID, or call 1-800-4-FED-AID and ask.

Contact your servicer and ask for a deferment request form. Most servicers accept requests online through their website, by phone, or by mail. When you submit the form, include proof that you meet the deferment category you are requesting — a letter from your employer stating you were laid off, a school enrollment verification, or an unemployment benefits statement.

Your servicer will review your request and notify you in writing whether deferment was granted. This process usually takes two to four weeks. If your request is denied, the letter will explain why and tell you what other options you have, such as forbearance or an income-driven repayment plan.

Keep copies of everything you submit — the form, your proof documents, and any confirmation emails or letters. If there is a dispute later about whether you were in deferment, these records protect you.

What happens to interest during deferment

Interest behavior during deferment depends on your loan type. On subsidized federal loans (Subsidized Stafford Loans and Subsidized Federal Perkins Loans), the government pays the interest that accrues during deferment. Your balance does not grow.

On unsubsidized federal loans (Unsubsidized Stafford Loans, PLUS Loans, and most other federal loans), interest accrues during deferment but you do not have to pay it while you are deferred. When deferment ends, that accrued interest is capitalized — added to your principal balance — and you owe interest on the interest going forward.

If you can afford to pay the interest that accrues during deferment, doing so will save you money over the life of the loan. You can make voluntary interest-only payments while deferred, and your servicer will apply them to reduce the amount that gets capitalized.

Deferment versus forbearance and income-driven repayment

Deferment, forbearance, and income-driven repayment are three separate tools, and which one makes sense depends on your situation and how long you need relief.

Forbearance is easier to get than deferment because you do not have to prove hardship. You can request forbearance for up to three months at a time, and you can renew it multiple times. However, forbearance is meant to be temporary — servicers will not grant it indefinitely. Interest accrues on all loan types during forbearance, including subsidized loans.

Income-driven repayment plans (such as PAYE, REPAYE, IBR, and ICR) recalculate your monthly payment based on your current income and family size. If your income is very low, your payment can be as low as $0 per month. Unlike deferment, you stay in repayment — you are not pausing, you are adjusting. Income-driven plans last as long as you need them, and after 20 to 25 years of payments, any remaining balance is forgiven. Interest still accrues, but you are making progress toward forgiveness.

If you need relief for a few months, forbearance is fastest. If you need relief for a year or more and you meet a deferment category, deferment is better because interest does not accrue on subsidized loans. If you need long-term relief and your income is low, an income-driven plan is usually the best option because it leads to forgiveness.

What to do if your deferment request is denied

If your servicer denies your deferment request, they must send you a written explanation. Common reasons for denial include: you do not meet the conditions for the category you requested, you did not provide adequate proof, or your loan type does not may have access to for that type of deferment (for example, Parent PLUS Loans do not may have access to for unemployment deferment).

If you believe the denial was wrong, contact your servicer and ask them to reconsider. Provide any additional documentation you have. If they deny you again, you can file a complaint with the Federal Student Aid Ombudsman at studentaid.gov/feedback-ombudsman.

If deferment is not available to you, ask your servicer about forbearance or an income-driven repayment plan. Both are alternatives that can lower or pause your payments without requiring you to meet deferment conditions.

Frequently Asked Questions

Does deferment hurt my credit score?

No. Deferment does not appear on your credit report as a negative mark. As long as you are in approved deferment, your account is in good standing and your credit is not affected. However, if you stop paying without requesting deferment, your account will go into default and your credit will suffer.

Can I defer my loans if I am already in default?

You cannot defer a loan that is in default. However, you can request a deferment after you bring your account current or enter a payment plan with your servicer. Some servicers will work with you to catch up on missed payments before granting deferment.

What happens when my deferment period ends?

Your servicer will send you a notice 30 to 60 days before your deferment ends, telling you when your payments resume and what your new payment amount is. If interest accrued during deferment, it will be added to your balance, which may increase your monthly payment. You can request another deferment if you still meet the conditions, or you can switch to forbearance or an income-driven plan.

Can I work while in deferment?

Yes. Deferment does not restrict your employment. Even if you are in unemployment deferment, you can work part-time or full-time. Unemployment deferment is for people actively seeking work, not for people who cannot work.

Do private student loans have deferment?

No. Private loans do not have deferment programs. If you need to pause payments on a private loan, contact your lender directly to ask about forbearance, income-based repayment, or a temporary payment reduction. Options vary by lender and are not may provide.