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What is Deferment?
Deferment is a postponement of repayment under various, specific circumstances
* For Federal Perkins Loans, subsidized FFEL Stafford Loans, and subsidized Direct Stafford Loans, you dont 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.
The deferments listed on the next page apply to all Federal Perkins Loan borrowers and to Direct Loan borrowers and FFEL borrowers who received their first loan on or after July 1, 1993. Other deferments might also be available if you have an outstanding balance on a federal student loan made before July 1, 1993. For more information, FFEL Stafford Loan borrowers should contact their lenders or agencies. Direct Stafford Loan
borrowers can contact the Direct Loan Servicing Center at:
The Direct Loan Servicing Center
Borrower Services: 1-800-848-0979 or 1-315-738-6634
Fax: 1-800-848-0984
TTY: 1-800-848-0983
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