Student Loan Deferment: How It Works & Who Can Qualify

Student loan deferment can temporarily postpone payments on your student loans, allowing you to hit pause on your bills without going into default. Most federal student loans automatically go into deferment while you're enrolled in school, but you can also request deferment after graduation if you run into financial hardship or have another qualifying reason.

Deferring student loans isn't always your best option, since interest can accrue and increase the total principal amount you have to repay. Learn more about how student loan deferment works, including its pros and cons.

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What is student loan deferment?

Student loan deferment lets you postpone payments on your student loans for a certain period of time. You won't have to make payments during a deferment, but interest might accrue during this time, depending on your loan type.

Both federal and private student loans are typically placed into deferment while you're enrolled at least half time in school. This means you don't have to make payments on your student loans while you're working toward your degree, and you usually have a six-month grace period after you graduate.

You might qualify for federal student loan deferment if you're unemployed, on active duty in the military, or have another eligible circumstance.

Private student loan rules vary by lender, and deferment requests are at the lender's discretion. Interest generally accrues on private student loans during deferment.

Types of federal student loan deferment

These are the types of federal student loan deferment options you might qualify for:

• In-school deferment: Federal loans are automatically placed in deferment when you're enrolled at least half time in an eligible college or career school. 
• Graduate fellowship deferment: Master's or doctoral students enrolled in an approved graduate fellowship program.
• Parent PLUS deferment: For parents while your child is in school at least half time and for 6 months after leaving school or graduating. Deferment isn't automatic, so parents must request it from the loan servicer or when you apply for the PLUS loan.
• Economic hardship deferment: Postpones payments for up to 3 years if you're receiving a means-tested benefit like welfare or meet certain income guidelines and you're working full time. Monthly income must be lower than 150% of the poverty guideline for your state and family size. You can also qualify if you're in the Peace Corps. 
• Unemployment deferment: Available for up to 3 years when you're receiving unemployment benefits or pursuing full-time work but are unable to find it.
• Cancer treatment deferment: For borrowers undergoing cancer treatment and for 6 months after treatment ends.
• Military service/post-active duty student deferment: Military members on or have completed qualifying active-duty service. Deferment lasts until you re-enroll in school or 13 months after your service and grace period, whichever comes first.
• Rehabilitation training deferment: Borrowers in an approved rehabilitation training program for treatment of vocational, drug abuse, mental health, or alcohol abuse.

Who is eligible for student loan deferment?

You're eligible for student loan deferment if you qualify for one of the deferment types and have qualifying loans, which include:

• Direct Subsidized and Unsubsidized Loans
• Direct Consolidation Loans
• Grad PLUS loans (taken out before July 1, 2026)
• Parent PLUS loans
• Federal Family Education Loan (FFEL) program loans
• Perkins Loans

Pros and cons of student loan deferment 

Deferring student loans has pros and cons worth considering before you apply.

On the pro side, deferment can help you through a financial rough patch, as it allows you to pause payments without having to worry about late fees or delinquency. It's also available for a variety of circumstances, including Peace Corps service, unemployment, or cancer treatment. Some types of student loans won't accrue interest during deferment, so you won't have to worry about your balance growing.

On the other hand, some student loans will accrue interest during the deferment period, which can increase your borrowing costs. If you don't pay that interest during your deferment, it capitalizes. You also won't be making any progress toward loan repayment, so you'll be in debt for longer. And you won't be making progress toward loan forgiveness if you're pursuing a program like Public Service Loan Forgiveness (PSLF).

Before pursuing deferment, consider alternative options for adjusting your student loan payments, such as an income-driven repayment (IDR) plan. Some IDR plans can set your payments as low as $0, depending on your income, and you'll still be making progress toward a program like PSLF.

How to apply for federal student loan deferment

Unless you're a parent borrower, your student loans will automatically be placed in deferment while you're enrolled at least half time in an eligible school. But if you're seeking deferment for another reason, here are the steps to apply:

1. Determine which deferment type: Review the various types of deferment to see which one applies to your situation. You could also contact your loan servicer for guidance if you have questions.
2. Fill out the form for your deferment type: You can access forms for each type of deferment on the Federal Student Aid website.
3. Gather supporting documentation: The form will indicate whether you need to provide verifying documentation. For cancer treatment deferment, for example, you'll either need your physician to fill out and sign a section of the form or provide separate documentation confirming your dates of treatment.
4. Submit your form and documents to your loan servicer: Your final step is to submit everything to your loan servicer. If you're not sure who your loan servicer is, you can find this information by signing in to your Federal Student Aid account.

Can you qualify for private student loan deferment?

Most private lenders let you defer payments while you’re in school. Many also offer a six-month deferment period — also known as a grace period — after you leave school before payments begin.

Once repayment starts, private student loans don’t have the same deferment options as federal loans. Some lenders may approve a temporary pause for up to a year if you can prove financial hardship or another extenuating circumstance like a natural disaster or medical emergency. However, policies vary by lender, and deferment is generally harder to qualify for than federal programs.

Keep in mind that private lenders may also use the term “forbearance” rather than deferment. In either case, interest continues to accrue during any payment pause on private loans, which increases your total loan costs.

Deferment vs. forbearance: What's the difference?

Both deferment and forbearance can temporarily postpone your federal student loan payments, but they have some key differences.

During deferment, some loan types won't accrue interest, while all loan types accrue interest during forbearance. Another major difference is that interest capitalizes after deferment, but not after forbearance.

There are two types of student loan forbearance: mandatory and general. A student loan servicer is required to grant mandatory forbearance if you meet the requirements, which include serving in an AmeriCorps position and completing a medical or dental residency program, among others.

General forbearance is available to borrowers experiencing financial hardship or facing major medical expenses, but it's up to the discretion of your loan servicer. Forbearance periods usually last up to 12 months at a time, but you may qualify for a cumulative total of three years.

Deferment is typically the better option than forbearance if you have subsidized loans or Perkins Loans because of the interest subsidy.

Does student loan deferment affect your credit score?

Student loan deferment doesn't typically hurt your credit score. The loan servicer will usually report it as current debt rather than as delinquent. Your student loan balance and payment history will likely show up on your credit report, but since the loan status is in deferment, it doesn't typically affect your credit score. 

A large deferred student loan balance can affect your credit score because it can factor into your debt-to-income ratio.