If student loan payments are becoming hard to manage, learning how to defer student loans may offer relief. Student loan deferment allows you to pause your monthly payments for a set period of time if you meet certain eligibility requirements.
For borrowers facing job loss, returning to school, or financial hardship, deferment can provide breathing room. But it’s important to understand how student loan deferment works, whether interest continues to grow, and how federal and private options differ.
What Is Student Loan Deferment?
Student loan deferment is a temporary pause on your required monthly payments. During deferment, you are not required to make payments, though interest may still accrue depending on the type of loan.
You may qualify for a student loan deferment program if you:
- Are unemployed
- Are experiencing economic hardship
- Are enrolled in school at least half-time
- Are serving in the military
- Are undergoing cancer treatment (for federal loans)
Deferment is different from default or delinquency. Your loans remain in good standing if your deferment is approved.
Many borrowers ask, “why are my student loans in deferment?” In some cases, loans are automatically placed in deferment while you’re enrolled in school or during certain national emergency periods. Always check with your loan servicer to confirm your status.
How to Defer Student Loans: Federal vs. Private
The process to defer your student loans depends on whether you have federal or private loans.
How to Defer Federal Student Loans
Federal student loans deferment options are standardized and governed by the U.S. Department of Education.
Here’s how to defer federal student loans:
- Contact your loan servicer.
- Request the appropriate deferment form.
- Submit documentation proving eligibility (such as unemployment benefits or school enrollment).
- Wait for written approval before stopping payments.
According to the U.S. Department of Education, borrowers must continue making payments until deferment is officially approved.
Common federal student loan deferral types include:
- In-school deferment
- Economic hardship deferment
- Unemployment deferment
- Military deferment
You can find detailed eligibility rules at StudentAid.gov.
How to Defer Private Student Loans
Private student loan deferment rules vary by lender.
If you’re wondering, “can I defer my student loans if they’re private?” the answer is maybe. Some lenders offer deferment on private student loans, but terms differ widely.
To defer private student loans:
- Contact your lender directly.
- Ask about private student loan deferment options.
- Review how long deferment lasts and whether interest accrues.
- Get the agreement in writing.
Some private student loans with deferment may limit how long you can pause payments. Others may charge fees. Always read the fine print before agreeing.
Does Interest Accrue During Student Loan Deferment?
The answer depends on your loan type.
Subsidized Federal Loans
If you have subsidized federal loans, the government pays the interest during certain deferment periods. That means your balance does not grow during approved deferment.
Unsubsidized Federal Loans
With unsubsidized loans, interest accrues during deferment. If unpaid, that interest may capitalize, meaning it’s added to your principal balance. This increases the total cost of your loan over time.
Private Loans
Most private student loans accrue interest during deferment. Policies vary, so confirm with your lender.
How Long Can You Defer Student Loans?
For federal loans:
- Economic hardship deferment typically lasts up to three years.
- Unemployment deferment may last up to three years.
- In-school deferment continues while you’re enrolled at least half-time.
Private student loans differ by lender. Some allow 12 months total; others allow longer periods. If you’re unsure how long you can defer your student loans, contact your servicer directly.
Should I Defer My Student Loans or Keep Paying?
Deciding whether to defer student loans depends on your situation.
Deferment may make sense if:
- You’ve lost your job.
- You’re facing temporary financial hardship.
- You’ve returned to school.
- You need short-term relief to avoid default.
You may want to reconsider if:
- You have unsubsidized loans and interest will grow quickly.
- Your hardship is long-term.
- You qualify for an income-driven repayment plan instead.
Can I Defer My Student Loans More Than Once?
Most likely, yes. Federal borrowers may qualify for multiple deferment periods if they meet eligibility requirements each time. However, most deferment types have lifetime limits.
If you’re wondering, “how can I get a deferment on my student loan again?” start by reviewing your previous deferment history with your servicer.
The Bottom Line on Deferring Student Loans
Understanding how to defer student loans can help you avoid missed payments during difficult times. Student loan deferment can provide temporary relief, but it isn’t free, especially if interest continues to grow.
