Loan Deferment and Forbearance

Loan Deferment and Forbearance

Deferment

Student loan deferment is an authorized temporary suspension of repayment that is granted under certain circumstances:

  • At least half-time study at a postsecondary school
  • Study in an approved graduate fellowship program or in an approved rehabilitation training program for the disabled
  • Unable to find full-time employment
  • Economic hardship (includes Peace Corps)
  • Active Military Duty while borrower is on active duty during a war or other military operation or national emergency and if the borrower was serving on or after October 1, 2007, for an additional 180-day period following the demobilization date for the qualifying service
  • For a borrower who is member of the National Guard or other reserve component of the U.S. Armed Forces (current or retired) and is called or ordered to active duty while enrolled at least half-time at an eligible school or within 6 months of having been enrolled at least half-time, during the 13 months following the conclusion of the active duty service, or until the borrower returns to enrolled student status on a least a half-time basis, whichever is earlier 

A deferment may be automatically applied on your behalf, but in most cases you must apply, meet the qualifications, and make arrangements with the servicer of your loans to receive deferment.

If you have a subsidized Federal Stafford/Direct Student Loan, you may not be required to pay the accrued interest during any approved periods of deferment.  For other categories of Federal and private loans, you are responsible for paying this interest.

If you are currently in repayment of a Federal FFELP or Direct Loan and enrolled at Bloomsburg University on at least half-time basis (Undergraduate six credits/Graduate 5 credits), you may qualify for an in-school deferment.  Please complete Sections 1, 2, & 3 of the In-School Deferment Request.  Make certain you sign and date the form.  In addition please complete Section 8 - Where to Send the Completed Deferment Request.   The form may be faxed to (570)389-4795 or mailed to:   Bloomsburg University of Pennsylvania Office of Financial Aid 400 East 2nd Street Bloomsburg, PA  17815.   If you are currently in repayment of a Federal Perkins Loan and enrolled at Bloomsburg University on at least half-time basis (Undergraduate six credits/Graduate 5 credits),  you may qualify for an in-school deferment.  Obtain the proper deferment form from the servicer of your loan.  This form should be then forwarded to the Office of the Registrar.

For more information on deferment options, contact the servicer of your loan.  

Forbearance

Student loan forbearance is an authorized temporary suspension of repayment that is granted under certain circumstances.  Forbearance differs from deferment in that most forms of forbearance are offered at the discretion of the lender or owner of your loans.  While all loans in the Federal Family Education Loan Program (FFELP), Federal Direct Loan Program, and a significant number of private loans allow forbearance in a wide variety of circumstances, it is not granted automatically nor is it guaranteed.  You must apply, meet the qualifications, and make arrangements with the servicer of your loans. You remain responsible for paying the daily interest accrual for all loan types during periods of forbearance. For more information on forbearance options, contact the servicer of your loan.