If a job change, a return to school, or an unexpected expense has made your student loan payments hard to manage, you may be wondering about your options. Student loan deferment can be a helpful short-term solution, but it isn’t always the best one. Deferment lets you temporarily pause your student loan payments when you meet certain eligibility requirements. It can provide temporary financial relief, but interest may continue to add up depending on your loan type.

Before requesting student loan deferment, federal borrowers should compare it with an income-driven repayment plan, which may reduce monthly payments while preserving certain federal benefits. Understanding how deferment works, who qualifies, and what it may cost can help you choose the best option for your situation.

What deferment means for student loans

Student loan deferment is an approved period when you are not required to make payments on an eligible federal or private student loan. You may qualify because you returned to school, are experiencing unemployment or economic hardship, joined the military, entered an eligible graduate fellowship, or meet another approved condition.

Deferment is temporary. When it ends, you generally resume payments unless you qualify for another repayment or relief option.

Deferment also isn’t the same as a grace period. A grace period is a set amount of time after you graduate, leave school, or drop below half-time enrollment before your first payment is due. For Direct Subsidized Loans, Direct Unsubsidized Loans, and FFEL Program loans, it’s typically six months. For Federal Perkins Loans, it’s typically nine months. Deferment, on the other hand, is a pause you qualify for based on specific circumstances, like going back to school or serving in the military.

Interest treatment depends on your loan type. Interest generally does not accrue during deferment on Direct Subsidized Loans, Subsidized Federal Stafford Loans, Federal Perkins Loans, or the subsidized portion of certain consolidation loans.

Interest generally continues to accrue on Direct Unsubsidized Loans, Unsubsidized Federal Stafford Loans, Direct PLUS Loans, including Parent PLUS Loans, and the unsubsidized portion of certain consolidation loans. Interest also generally continues to accrue on private student loans during deferment.

If you don’t pay the interest while your loan is deferred, it may be capitalized. That means the unpaid interest gets added to the amount you borrowed (your principal). From then on, you’re charged interest on that bigger balance, so you end up paying interest on your interest and repaying more overall.

Deferment vs. forbearance

Deferment and student loan forbearance can both temporarily pause required payments, but they work differently.

Deferment is usually tied to a qualifying condition, such as attending school at least half-time, active-duty military service, unemployment, economic hardship, or participation in another approved program. Depending on your federal loan type, interest may not accrue while your loan is in deferment.

With forbearance, interest accrues on every federal loan type during the forbearance period. Interest also generally accrues on private student loans during forbearance. If you do not pay the interest as it accrues, it may increase your loan balance based on your loan’s terms.

Because forbearance can increase the amount you owe, check whether you qualify for deferment or an income-driven repayment plan before requesting it. Continue making payments until your loan servicer confirms that your deferment or forbearance request has been approved.

The 8 federal student loan deferment types

Federal Student Aid identifies eight main deferment types. Each has its own qualifications, time limits, and request process.

Deferment type	Who may qualify	Maximum length	Form or process
Cancer treatment	Borrowers undergoing qualifying cancer treatment	During treatment and for six months afterward	Cancer Treatment Deferment Request
Economic hardship	Certain borrowers receiving means-tested benefits, meeting income requirements, or serving in the Peace Corps	Up to three years	Economic Hardship Deferment Request
Graduate fellowship	Borrowers enrolled in an approved graduate fellowship program	While eligible participation continues	Graduate Fellowship Deferment Request
In-school	Borrowers enrolled at least half-time at an eligible college or career school	While eligible enrollment continues	Usually automatic after the school reports enrollment
Military service and post-active duty	Borrowers performing qualifying active-duty military service	Varies based on service and enrollment	Military Service and Post-Active Duty Student Deferment Request
Parent PLUS borrower	Parent PLUS borrowers whose student is enrolled at least half-time	During eligible enrollment and for six months afterward	Parent PLUS Borrower Deferment Request
Rehabilitation training	Borrowers enrolled in an approved rehabilitation training program	While eligible participation continues	Rehabilitation Training Deferment Request
Unemployment	Borrowers receiving unemployment benefits or seeking but unable to find full-time work	Up to three years	Unemployment Deferment Request

Note: For economic hardship deferment, borrowers may qualify based on income if they earn no more than the greater of the federal minimum wage or 150% of the poverty guideline for their family size and state.

Not all federal deferments have the same time limits. Economic hardship and unemployment deferments are generally limited to three years, while other deferment types have different eligibility periods. For example, an in-school deferment may continue as long as you remain enrolled at least half-time and meet the eligibility requirements.

Economic hardship and unemployment deferments will no longer be available for federal Direct Loans made on or after July 1, 2027. This change does not eliminate the other federal deferment types listed above.

In-school deferment meaning and eligibility

In-school deferment allows eligible federal student loans to be deferred while you are enrolled at least half-time at an eligible college or career school.

Your school determines what counts as half-time enrollment. At many colleges, this is commonly six credit hours per semester for undergraduate students, but your school may use a different definition. Confirm your enrollment status with the registrar or financial aid office.

Federal in-school deferment is usually automatic. Once your school reports that you are enrolled at least half-time, your eligible student loans should be placed into deferment. If your student loans are not deferred after you enroll, contact your school so it can review and report your enrollment information.

Graduate or professional students who received a Direct PLUS Loan may qualify for an additional six months of deferment after graduating, leaving school, or dropping below half-time enrollment. Parent PLUS borrowers may also request deferment while the student for whom the loan was borrowed is enrolled at least half-time, plus an additional six months after the student leaves school or drops below half-time.

Should you defer your student loan payments?

Whether deferment makes sense depends on your financial circumstances, loan type, and eligibility.

If you attend school at least half-time, deferring required payments until after graduation may help you focus on school and other expenses. However, interest may continue to accrue during this time. Even if you choose deferred repayment, you may be able to make voluntary payments toward your interest or balance.

For example, some students work while attending school and choose to make small payments when their budgets allow. Paying accruing interest can help limit how much is added to the balance when repayment begins.

Working while attending school is not possible for everyone. Classes, family responsibilities, health needs, internships, and other commitments can all affect your schedule. Choose a repayment approach that fits your financial situation without creating unnecessary pressure.

Before selecting deferment, understand how interest will affect your balance and compare it with any federal repayment options for which you qualify.

What student loan deferment costs

Deferment can provide short-term relief, but it may increase the total cost of your student loan. The impact depends on whether interest accrues during the deferment period.

Loan type	Does interest generally accrue during federal deferment?
Direct Subsidized Loans	No
Subsidized Federal Stafford Loans	No
Federal Perkins Loans	No
Subsidized portion of certain consolidation loans	No
Direct Unsubsidized Loans	Yes
Unsubsidized Federal Stafford Loans	Yes
Direct PLUS Loans, including Parent PLUS Loans	Yes
Unsubsidized portion of certain consolidation loans	Yes
Private student loans	Generally yes, based on the lender’s terms

If you are responsible for interest during deferment, you may be able to pay it as it accrues. Otherwise, the unpaid interest may be capitalized, meaning it is added to your principal balance, based on the loan type and terms.

For example, a $10,000 loan with a 6.5% annual interest rate would accrue approximately $650 in interest over a 12-month deferment period.

Starting loan balance: $10,000
Interest accrued during deferment: +$650
New balance if the interest is capitalized: $10,650

This example is for illustration purposes only and does not represent a current federal or private student loan rate. Your actual cost will depend on your balance, interest rate, deferment length, and loan terms.

If the unpaid interest is capitalized, it is added to your loan balance. That means your balance would increase from $10,000 to $10,650, which could increase the total amount you repay over the life of the loan.

You can use a student loan calculator to estimate how different balances, rates, and repayment choices may affect your payments.

Compare deferment with income-driven repayment first

If you have federal student loans and are struggling to make payments, consider an income-driven repayment plan before requesting deferment.

Income-driven repayment plans calculate your monthly federal student loan payment using your income and family size or number of dependents. Depending on your circumstances and the plan for which you qualify, your payment may be as low as $0. Private student loans are not eligible for federal income-driven repayment plans.

Before requesting deferment, ask yourself:

• Is my financial challenge temporary or ongoing?
• Will interest accrue on my loans during deferment?
• Am I working toward federal loan forgiveness?
• Would a lower monthly payment help me avoid pausing payments?
• Do my loan types qualify for an income-driven repayment plan?

A deferment may help with a temporary event, such as returning to school or beginning qualifying military service. An income-driven repayment plan may be more appropriate when you need an ongoing payment based on your income.

Not everyone qualifies for every income-driven plan. Making lower payments or extending repayment can also increase the total interest you pay. Compare your available plans through Federal Student Aid and contact your loan servicer before making a decision.

How to put student loans in deferment

If you are asking, “Can I defer my student loans?” start by identifying whether your loans are federal or private. If you have federal student loans, follow these steps:

1. Identify the deferment type. Review the qualifying circumstances and determine which type may apply to you.
2. Complete the required form. Federal Student Aid provides separate forms for most deferment types.
3. Gather supporting documents. You may need proof of enrollment, income, unemployment benefits, military service, treatment, or participation in an approved program.
4. Submit the request. Send your form and documentation to your federal loan servicer. For private loans, follow the lender or servicer’s process.

If you have private student loans, contact your lender or servicer to find out what options are available and how to apply. See the private student loan deferment section below for more details. Most federal deferments are not automatic. In-school deferment is a common exception because it is generally applied after your school reports eligible half-time enrollment.

Continue making your scheduled payments until your servicer confirms that your student loans have been deferred. If you stop paying before your request is approved, your loan could become delinquent or enter default.

Private student loan deferment

Private student loan deferment varies by lender and loan product. Private lenders are not required to provide the same deferment options, interest treatment, or application process as federal student loans.

Before taking out a private student loan, review the lender’s terms for in-school repayment, grace periods, military deferment, financial hardship, and other temporary relief options.

At Ascent, we offer several in-school repayment options for undergraduate student loans and graduate student loans, including fully deferred repayment, interest-only payments, a $25 minimum payment, and immediate repayment, depending on eligibility. With Ascent’s fully deferred repayment plan, you don’t have to make payments while you’re in school or during your applicable grace period. Interest continues to accrue during this time and is added to your principal balance when full repayment begins. Depending on your situation, deferment or forbearance options may also be available if you’re experiencing financial hardship. Available options, eligibility requirements, and terms vary by loan.

Depending on the loan, borrower eligibility, and supporting documentation, Ascent options may include:

• Active-duty military deferment for up to 36 months in total
• In-school, residency, clerkship, internship, or fellowship deferment, up to 12 months at a time and 48 months total
• Temporary hardship forbearance for up to three months per period, with a maximum of 24 months over the life of the loan.
• Natural disaster or declared emergency forbearance for up to three months

During any approved deferment or forbearance period, interest will continue to accrue. If unpaid interest is added to your loan balance at the end of the relief period, it could increase the total amount you repay over time. Eligibility requirements, available benefits, and loan terms vary by product. Please review our terms and conditions or contact Launch Servicing for details.

If you have an Ascent parent loan, repayment options may differ from those available to student borrowers. Depending on your loan, you may have access to interest-only payments, or immediate repayment while your student is in school.

Does deferment hurt your credit?

An approved deferment generally keeps your loan in an approved payment status rather than recording the deferred payments as missed payments.

However, you should continue paying until your servicer confirms that the deferment is approved. Payments missed before approval or after the deferment ends could cause your account to become delinquent and may affect your credit.

Review your account regularly and contact your servicer if the deferment status is missing or appears incorrect. You can also check your credit reports to confirm that your loans are being reported accurately.

Advantages and disadvantages of student loan deferment

Deferment can provide financial breathing room when you are unable to make your normal student loan payments. It may help you avoid missed payments while you return to school, look for work, complete qualifying military service, or manage another eligible circumstance.

For certain subsidized federal loans, deferment can be especially helpful because interest generally does not accrue during the approved period.

The primary disadvantage is cost. Interest generally continues to accrue on unsubsidized, PLUS, and private student loans. Your balance may be higher when deferment ends, especially if unpaid interest is capitalized.

Deferment can also pause your progress toward paying off your loan. In most cases, time in deferment does not count toward federal forgiveness programs. Before applying, compare the immediate relief with the possible long-term cost.

Alternatives to deferment

If deferment is not available or is not the right choice, other options for federal student loans may include:

• Income-driven repayment: Eligible federal borrowers can apply for a payment based on income and family size. In some cases, the required payment may be as low as $0.
• Forbearance: This may temporarily pause or reduce payments, but interest accrues on every loan type during forbearance.
• Public Service Loan Forgiveness: Eligible Direct Loan borrowers working full-time for a qualifying employer may receive forgiveness of their remaining balance after the equivalent of 120 qualifying monthly payments under an accepted repayment plan.
• Teacher Loan Forgiveness: Eligible teachers who complete five consecutive academic years at a qualifying low-income school or educational service agency may receive forgiveness of up to $17,500 on eligible federal loans.
• Loan discharge or cancellation: Certain circumstances, including total and permanent disability or a qualifying school closure, may make a federal borrower eligible for discharge.

Each option has specific requirements. Review the current information from Federal Student Aid and speak with your loan servicer before assuming you qualify.

Frequently asked questions

Is there still a deferment on student loans?

Qualifying borrowers can still request deferment. However, there is no broad pandemic payment pause today for federal student loans. Deferment is now generally based on an individual borrower meeting the requirements for a specific deferment type.

How do you qualify for student loan deferment?

For federal loans, you generally need to meet the requirements for one of the eight deferment types and submit the applicable form and documentation. In-school deferment is usually automatic after your school reports eligible half-time enrollment. For private student loans, eligibility and available relief options vary by lender and loan terms. Ascent borrowers should review the deferment and hardship assistance options outlined above.

Is it a good idea to defer student loans?

It can be helpful when you need temporary relief. Deferment may cost less on subsidized federal loans because interest generally does not accrue during an eligible period. Interest normally continues to accrue on unsubsidized, PLUS, and private loans, so make sure to compare the short-term benefit with the long-term cost.

Is it hard to defer student loans?

In-school deferment is generally automatic for eligible federal loans. Other types usually require an application and supporting documentation. Make sure to continue making payments until your servicer confirms approval.

How many classes do I need to defer student loans?

You generally need to be enrolled at least half-time at an eligible school. Many colleges commonly define half-time undergraduate enrollment as six credit hours per semester, but your school determines its own standard.

Does deferment hurt your credit?

An approved deferment generally reports your loan as current rather than showing the deferred payments as missed. However, stopping payments before approval or missing payments after deferment ends could affect your account and credit. Confirm your status with your servicer.

Deciding whether deferment is right for you

Student loan deferment can provide valuable short-term relief, but it is important to understand how interest, eligibility requirements, and repayment options may affect your total cost.

If you have federal student loans, review your federal repayment and relief options before considering private student loans. Federal loans include benefits and protections that private student loans do not match.

As part of your complete funding package, after grants, scholarships, and federal loans, Ascent’s private student loans include in-school deferment and hardship options you can read in full in our terms and conditions.

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