What deferment means and when you can use it
Deferment is a formal pause on your student loan payments. During deferment, you stop making monthly payments, and in many cases the federal government pays the interest that would normally accrue. You are not forgiven the debt — you still owe the full amount — but the clock stops for a set period, usually six months to three years depending on your reason.
Deferment is different from forbearance, which is the other major pause option. With forbearance, interest still accrues and you pay it later. With most federal deferments, the government covers the interest, so you owe less when payments resume. This makes deferment the better choice if you can get it.
You can use deferment if you are in one of these situations: you are still in school at least half-time, you are in a residency or fellowship program, you are unemployed or underemployed, you are experiencing economic hardship, or you are serving on active duty in the military. Some loans have additional deferment reasons — check your loan documents or your servicer's website for the full list.
Key Takeaways
- Federal student loans can be paused through deferment if you are in school, unemployed, underemployed, facing hardship, or on active military duty.
- During deferment on most federal loans, the government pays the interest, so you owe less when payments resume than you would with forbearance.
- You must request deferment from your loan servicer — it does not happen automatically, and you cannot defer indefinitely.
- The deferment period lasts from six months to three years depending on your reason, and you must reapply if you want to extend it.
- Private student loans rarely offer deferment; contact your lender directly to learn what pause options exist for your specific loan.
How to request deferment from your federal loan servicer
Your loan servicer is the company that collects your payments. You can find out who services your federal loans by logging into studentaid.gov and viewing your loan details, or by calling the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). Write down your servicer's name and phone number before you start.
Contact your servicer and ask for a deferment request form. Some servicers let you request deferment online through your account portal; others require a paper form mailed in. Ask which method is fastest for your servicer. The form will ask you to state your reason for deferment and may ask you to provide supporting documents — for example, proof of unemployment from your state labor department, or a letter from your school confirming your enrollment.
Submit the form and any required documents. Keep a copy for your records. Your servicer will review your request and send you a written decision. If approved, you will receive a notice showing the deferment start date and end date. If denied, the notice will explain why and tell you whether forbearance is available instead.
What documents you may need to provide
The documents required depend on your deferment reason. If you are in school, bring a letter from your school's registrar or financial aid office stating that you are enrolled at least half-time and the expected graduation date. If you are unemployed, bring a letter from your state unemployment office or a recent job search log showing your efforts to find work. If you are underemployed, bring recent pay stubs showing your current income.
If you are claiming economic hardship, bring documentation of your hardship — this might be a medical bill, an eviction notice, a job loss letter, or a statement of your monthly expenses versus income. Your servicer will tell you what counts as sufficient proof. Do not guess; call and ask what specific documents they need before you gather them.
If you are on active military duty, bring a copy of your military orders or a letter from your commanding officer. If you are in a medical or dental residency, bring a letter from your program director confirming your enrollment and expected completion date.
How long deferment lasts and what happens when it ends
The length of your deferment depends on your reason. If you are in school, deferment lasts as long as you are enrolled at least half-time, plus six months after you graduate or drop below half-time enrollment. If you are unemployed, deferment usually lasts three years, but you must recertify your unemployment status every six months. If you are in economic hardship, deferment typically lasts one year and must be renewed annually if your hardship continues.
When your deferment period ends, your servicer will send you a notice 30 to 60 days before payments resume. Your monthly payment amount will be the same as it was before deferment unless you have changed income or family size. If you still cannot pay, you can request forbearance or another deferment period if you still meet the requirements.
If you do not request another deferment or forbearance before your current period ends and you do not resume payments, your loan will go into default. Default damages your credit and can trigger wage garnishment and tax refund offset. Contact your servicer before your deferment ends if you think you will need more time.
Interest and what you owe after deferment
On most federal loans, the government pays the interest that accrues during deferment. This means your loan balance stays the same — you do not owe more when payments resume. The main exception is unsubsidized loans, where interest accrues even during deferment and gets added to your balance. If you have unsubsidized loans, ask your servicer whether your deferment reason qualifies for interest-free deferment or whether interest will accrue.
On subsidized loans — usually undergraduate federal loans — the government covers the interest during deferment, so you owe exactly what you borrowed. On PLUS loans (parent or graduate), interest accrues and is capitalized, meaning it gets added to your principal balance. This is why deferment is more valuable on subsidized loans than on PLUS loans.
When deferment ends, your servicer will tell you your new balance and your new monthly payment. If you have multiple loans with different servicers, each servicer handles interest separately, so check with each one about how interest is treated during your deferment.
Private student loans and deferment options
Private student loans — those from banks, credit unions, or other lenders rather than the federal government — rarely offer deferment. Most private lenders offer forbearance instead, which pauses payments but lets interest accrue. Some private lenders have hardship programs that may reduce your payment temporarily, but these are not deferments and work differently from federal options.
Contact your private loan lender directly and ask what pause or payment reduction options are available. Have your loan account number ready. Ask whether they offer forbearance, whether interest accrues during forbearance, and how long the pause can last. Private lenders set their own rules, so the answer depends entirely on your lender and your loan agreement.
If you have both federal and private loans, prioritize deferring your federal loans first, since federal deferment usually covers interest and private forbearance does not. This saves you money when payments resume.
What to do if your deferment request is denied
If your servicer denies your deferment request, ask why in writing. The denial letter should explain the reason — for example, you do not meet the requirements for that deferment reason, or you did not provide required documentation. Read the letter carefully and call your servicer to understand what went wrong.
If you were denied because of missing documents, ask exactly what documents you need and resubmit your request with them included. If you were denied because you do not meet the deferment requirements, ask whether forbearance is available instead. Forbearance is easier to get — you do not have to prove a specific reason — but interest accrues, so it is a less favorable option.
If you believe the denial was a mistake, ask your servicer to review the decision again. You can also file a complaint with the Consumer Financial Protection Bureau (CFPB) if you believe your servicer treated you unfairly, though this does not overturn the denial when ready.
Frequently Asked Questions
Can I defer my loans while I am in school?
Yes. If you are enrolled at least half-time in an accredited school, you can defer your federal loans for the entire time you are in school plus six months after you graduate or drop below half-time status. You will need to provide proof of enrollment from your school's registrar or financial aid office.
Does deferment hurt my credit score?
No. Deferment is a formal pause approved by your servicer, so it does not appear as a missed payment on your credit report. Your credit score is not affected by deferment itself. However, if you do not request deferment and straightforward stop paying, your loan will go into default and your credit will be damaged.
Can I make payments during deferment?
Yes. You can pay toward your loan at any time, even during deferment. If you have unsubsidized loans where interest accrues during deferment, making payments during deferment prevents that interest from being added to your balance. Ask your servicer how to make a payment toward principal only.
What happens to my deferment if I change jobs or move?
Deferment continues as long as you meet the requirements for your deferment reason. If you are deferring because of unemployment and you find a job, your deferment ends. If you are deferring because you are in school and you graduate, your deferment ends six months after graduation. Moving does not affect deferment, but make sure your servicer has your current address so you receive notices about when deferment ends.
Can I defer my loans more than once?
Yes, but only if you continue to meet the requirements. If you are in school, you can defer for the entire duration of your enrollment. If you are unemployed, you can request a new deferment period after the first one ends if you are still unemployed. Each deferment period must be requested separately — deferment does not renew automatically.