Repayment Challenges

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Repayment Assistance

800.343.8883

617.728.4200, ext. 5000

repaymentcounselor@asa.org

Mon – Thu: 8:00 a.m. – 10:00 p.m.
Fri: 8:00 a.m. – 5:00 p.m.
Sat: 8:00 a.m. – 12:00 p.m.
Sun: 5:00 p.m. – 9:00 p.m.

Please note: All times Eastern.

Deferment and Forbearance

Events like losing a job, getting sick, and having financial trouble can create many challenges. In such situations, making on-time student loan payments may not be a priority.

Before missing any payments, though, know that under certain circumstances you can temporarily suspend your payments with deferment and forbearance. Find out about the important differences between these postponement options—and find the option right for you.

Deferment: Things to Know

  • Different deferments have different criteria.
  • Unemployment, extreme economic hardship, enrolling in school at least half time, or active military duty may qualify you.
  • If you meet the criteria and have deferment time available, you cannot be denied a deferment.
  • During a deferment, the federal government pays any interest that accrues on your subsidized loans—but not on unsubsidized loans. Unsubsidized interest on deferred loans can increase the amount you owe overall.

See how a deferment could impact your loan by using our deferment calculator.

Forbearance: Things to Know

  • If you don’t meet the criteria for a deferment, you may qualify for forbearance.
  • In most cases, forbearance is granted solely at the discretion of your lender or servicer.
  • Forbearances are usually reserved for cases of financial hardship or illness.
  • Unlike a deferment, in forbearance both subsidized and unsubsidized portions of your loan continue to accrue interest.
  • At the end of the forbearance period, the interest is capitalized (added to the principal balance of the loan).
  • Forbearance increases the amount you owe.

See how forbearance could impact your loan by using our forbearance calculator. Contact your lender or servicer for more information.

Choosing the Right Option

Deferment and forbearance are both preferable to missing loan payments. But, because forbearance increases the amount you owe, try to first qualify for a deferment.

Also, before postponing repayment, see if it makes sense for you to lower your payments with a different repayment schedule. This can save you money and preserve your deferment and forbearance eligibility for situations when you really need it. There are limits to how much deferment and forbearance time you can use.

Loans given to you by your state will have different deferment and forbearance options from federal loans. To learn about your specific options, contact the servicer of your state loans or your state’s office of education.

Contact American Student Assistance® (ASA) to find out about these different postponement options and which you may qualify for. If you qualify, we can give you the right form and connect you with your servicer to pause your payments.

Keep Making Payments

Always continue making monthly loan payments until your lender or servicer notifies you that deferment or forbearance has been granted.

If you don’t get formal notification quickly, contact your servicer or ASA® to make sure your paperwork was received.