Loan Collection Office

Deferment

On October 7, 1998, the Higher Education Amendments of 1998 (H.R. 6) were signed into law.  These amendments expand the deferment and partial loan cancellation benefits for older Federal Perkins, National Direct, and National Defense Loans (William D. Ford Direct Subsidized and Unsubsidized Loans are not included in this provision).  Partial loan cancellation provisions have been expanded for loans received prior to July 23, 1992 and deferment provisions for loans received prior to July 1, 1993 to equal provisions granted to loan recipients with loans made after those respective dates.  Borrowers who received loans on or after those dates are not affected. 

The provisions of the law became effective October 7 , 1998.  The law is not retroactive and covers only eligible deferment and cancellation service you may have since October 7, 1998.

Deferments:  In addition to the deferment provisions in their promissory note, borrowers with an outstanding balance on a Federal Perkins, national Direct, or National Defense loan made prior to July 1, 1993 may now be eligible to receive deferment of repayment for periods of: 

    The following chart shows a list of provisions that can qualify for deferment.   

Deferment Provisions
National 
Defense
National Direct Disbursed 
Before 10/1/80
National Direct Disbursed Before 7/1/93 & on or after
10/1/80
Federal Perkins Disbursed 
Before 7/1/93 &
on or after 10/1/80
Federal Perkins/ National Direct
Disbursed on or 
after 7/1/93
Half time enrollment1
No limit*
No limit*
No limit*
No limit*
No limit*
Less than half-time enrollment as a regular student
3 years **
N/A
N/A
N/A
N/A
Rehabilitation Training
No limit *
No limit *
No limit *
No limit *
No limit*
Graduate fellowship study
N/A
N/A
N/A
N/A
No limit*
Eligible internship or residency program2
N/A
N/A
2 years 2
2 years 2
N/A
Unable to secure full-time employment
3 years*
3 years*
3 years*
3 years*
3 years*
Economic hardship 3
3 years*
3 years*
3 years*
3 years*
3 years*
Hardship
Yes
Yes
Yes 
Yes
N/A
Forbearance as determined by school 4
3 years
3 years
3 years
3 years
3 years
Peace Corps/ACTION program volunteer
3 years
3 years
3 years*
3 years*
See footnote 5*
Full-time volunteer for tax-exempt org. in service comparable to Peace Corps/ACTION
3 years*
3 years*
3 years*
3 years*
N/A
U.S. Armed Services serving in area of hostility6
3 years
3 years
3 years*
3 years*
3 years*
Officer in Commissioned Corps of US Public Health Service
N/A
N/A
3 years*
3 years*
N/A
National Oceanic and Atmospheric Administration Corps.
N/A
N/A
N/A
3 years*
N/A
Temporary total disability or care for temporarily totally disabled spouse/dependent
N/A
N/A
3 years7*
3 years*
N/A
Pregnancy, care of new born or newly adopted child8
N/A
N/A
N/A
6 months*
N/A
Mother of pre-school child working or returning to work 9
1 year*
1 year*
1 year*
1 year*
N/A

* Principal need not be paid, and interest does not accrue.  
** Principal and interest may be deferred, but interest continues to accrue

DEFERMENT: Generally, no payment is required an no interest accrues (with the exception of forbearance/hardship deferments where interest does accrue)

To ensure that your account is kept current, you must notify the Accounts Receivable Office of all changes in name,
permanent address and your entrance into or termination from any of the above.

1 A deferment request from a borrower enrolled in a graduate or postgraduate fellowship-supported program outside of the US is approved until completion of the fellowship period.
2 The internship program must require that the borrower have a bachelor's degree before being admitted.  In addition, the program must be required by a state licensing agency for certification for professional practice or service, or the program must lead to postgraduate degree or certificate from a post secondary school, hospital or health care facility.
3 A borrower is considered to have an economic hardship if the borrower:
    A. is working full-time but earning an amount that does not exceed the greater of (1) the federal minimum wage or (2) an amount equal to 100% of the poverty line for a family of 2 as     determined according to section 673(2) of the Community Service Block Grant Act, OR
    B. has received an Economic Deferment on another Title IV loan.

    C. is receiving State or Federal assistance.
4 Deferment is allowed when student loan debt burden is greater than 20% of gross income.
6 Military service must be in an area that qualifies for hazardous duty pay.
7 Applies to borrower or care of spouse only. Does not allow deferment for the care of temporarily totally disabled dependent.
8 Borrower must not be attending an eligible post secondary institution or be gainfully employed. Deferment must begin within 6 months after the borrower ceased to be enrolled at least half-time at an eligible institution.
9 Borrower's salary must not be more than $1.00 over the minimum hourly wage rate.
10 Infants, toddlers, children and youth with disabilities are defined in Section S602(a)(1) and 672(1) of the individuals with Disabilities Education Act.

| Loan Collection Office | Controller's Office |

Report an Error on this Page

Looking for Answers? Ask this Department.

Last Update: Thursday, June 07, 2007

Note: This site is accessible to any browser, although, it will look much better in a browser that supports web standards.
To view this page properly, please upgrade your browser. We recommend:
Mozilla Firefox (PC/Mac/Linux download)
Opera (PC/Mac/Linux/Solaris download)
Safari (Mac download)