Deferments and forbearances allow you to temporarily stop making payments on your loan.

Let the Direct Loan Servicing Center know if you can't make your payments. If you meet certain requirements, you may receive a deferment or forbearance that allows you to temporarily stop making, reduce, or extend payments on your loan. Do not delay this request for help. If you fall behind on your payments, your delinquency will likely be reported to a national credit reporting.

Deferments

Interest stops on a subsidized loan while in deferment. Deferments are not automatic, you must request for an approval. There are many types of deferments so be sure to ask. Below are the three most common deferments:

1. Unemployment (6-month period with a maximum of 3 years)
   
   
2. Economic Hardship (12-month period with a maximum of 3 periods)
   
   
3. Returning to school at least half-time enrollment (unlimited)
   
   
4. Be on active duty (including National Guard duty) during war, national emergency or military operation


Forbearances

Interest is still charged on a subsidized loan while in forbearance. If you do not qualify for a deferment but are having a hard time repaying your student loan, you may be eligible for a forbearance. Forbearance is allowed at the discretion of the lender.

Some common reasons for forbearances are:

1. Poor health
   
   
2. A rigorous residency program, or
   
   
3. Financial hardship

Forbearance often results in an extended repayment period

Don't default. If you don't repay your loan, you'll face serious consequences.

Student loans can ruin your credit if you are not smart

• You will lose the privilege of making monthly payments; the entire amount of your loan will become due
  
  
• You will no longer be eligible to receive additional federal financial aid (grants and/or loans)
  
  
• A portion of your paychecks or tax refunds can be taken to pay back your loan
  
  
• You can be hit with collection costs
  
  
• You may not be eligible for certain jobs, as some employers check credit
  
  
• You will damage your credit rating, making it harder and more expensive to borrow money in the future
  
  
• You may lose your professional license