Deferment & Forbearance

Postponing Loan Repayment

Deferment: A deferment is a period of time during which no payments are required and interest does not accrue, unless you have an Unsubsidized Stafford Loan. In that case, you must pay the interest. To qualify for a deferment, you must meet specific eligibility requirements.

Forbearance: If you are not eligible for a deferment, but are temporarily unable to meet your repayment schedule, you may be eligible for a forbearance. Forbearance occurs when your servicer agrees to either temporarily reduce or postpone your student loan payments. Interest continues to accrue and you are responsible for paying it. 

Important Tips

  • Postponement is not automatic; borrowers must submit a completed application to each of their servicers.
  • The servicer will determine eligibility and notify the borrower once the request has been processed.
  • The borrower is responsible to continue making regular monthly payments until the request has been processed.
  • The borrower must continue making interest payments during periods of forbearance.
  • The borrower must keep track of the deferment/forbearance end-date and be prepared for repayment to resume. 
  • The Deferment/Forbearance chart details the options available for each loan program.

Application Process

Borrowers must contact their loan servicer to apply for any of the deferment or forbearance options. (A servicer is the organization/entity responsible for collecting payments and managing the loan during repayment.)

Federal Direct Stafford or PLUS Loans:  Your loan servicer will provide details and forms needed to complete the application process. Borrowers can identify their loan servicer by looking up their loan details on NSLDS (National Student Loan Database System).

Federal Perkins or Institutional Loans:  The Brown University Loan Office will handle your requests.  You will need to complete the appropriate application form (below) and return the form to the Loan Office for processing. 

Loan Codes & Types

D10: Loans for Disadvantaged Students (LDS) M06: Plitt/Anderson Loan
M02: Casperson Loan M07: Tarandi Loan
M03: Medical Loan P10: Primary Care Loan (PCL)
M04: Kaplan Loan PER: Perkins Loan
M05: Ellwood Loan POL: Brown University Loan

Types of Deferment for Perkins or Institutional Loans

Student Deferment - A borrower enrolled at least half-time at an eligible institution may defer repayment. (Note: LDS or PCL require full-time enrollment for student deferment.)

Economic Hardship - A Perkins Loan borrower may be eligible to defer repayment while meeting federal guidelines for financial difficulty. See FinAid.org for additional details.

Unemployment - A Perkins Loan borrower may be eligible to defer repayment while out of work or working less than 30 hours per week AND actively seeking full time employment.

Internship/Residency – A borrower is eligible to defer repayment on the following loans while participating in residency training.

Casperson, Kaplan, Medical, Plitt/Anderson, or Tarandi Loans: Up to three years on loans disbursed during or after the 2005/2006 academic year.

Ellwood Loans: Up to three years on loans disbursed during or after the 2011/2012 academic year.

LDS or PCL Loans: Up to three years for borrowers pursuing advanced professional training in primary care, including internships and residencies.

Volunteer under the Peace Corps Act 

Casperson, Ellwood, Kaplan, LDS, Medical, PCL, Brown University Loans: A borrower may be eligible for deferment for up to three years while serving as a volunteer under the Peace Corps Act.

Perkins Loans: A borrower may be eligible for deferment and subsequent cancellation while serving as a volunteer under the Peace Corps Act. Borrowers should contact the Loan Office for additional details and application.

Volunteer in AmeriCorp Vista

Casperson, Ellwood, Kaplan, Medical, Brown University Loans: A borrower may be eligible for deferment for up to three years while serving as a volunteer under AmeriCorp Vista; under the Section 603 of the Economic Opportunity Act of 1964.

Perkins Loans: A borrower may be eligible for deferment and subsequent cancellation while serving as a volunteer in AmeriCorp Vista. Borrowers should contact the Loan Office for additional details and application.

Full time member of Armed Forces

Casperson, Ellwood, Kaplan, LDS, Medical, PCL, Brown University Loans: A borrower may be eligible for deferment for up to three years while serving as a member of the Armed Forces of the United States. (LDS or PCL define Armed Forces as the Army, Navy, Marine Corps, Air Force, Coast Guard, NOAA, or U.S. Public Health Service.)

Perkins Loans: A borrower may be eligible for deferment only under certain specific guidelines related to Active Duty service. Borrowers should complete the Military Deferment form below.

Graduate/Fellowship

Perkins Loans: A borrower may be eligible for deferment if enrolled and attending as a regular student in a graduate fellowship program approved by the Secretary or if engaged in graduate or postgraduate fellowship-supported study outside the United States.

LDS or PCL Loans: A borrower is eligible for deferment for up to two years if participating in a fellowship training program or a full-time educational activity which is directly related to the health profession for which the borrower prepared at the Institution.

 Rehabilitation Training 

Perkins Loans: A borrower may be eligible for deferment if enrolled in a course of study that is part of a Department-approved rehabilitation training program for disabled individuals.

FAQ

How do I apply for a deferment or forbearance and what is the difference between them?

Deferment allows you to temporarily postpone payments when you meet specific eligibility criteria. Common types of deferment include in-school, unemployment, economic hardship, or residency. Interest does not accrue during deferment.

Forbearance allows you to temporarily reduce your monthly payment to interest-only payments. Interest continues to accrue and must be paid each month. There is a maximum of 36 months forbearance available.   

What is the difference between Unemployment Deferment and Economic Hardship Deferment?

If you are currently unemployed or under employed (working less than 30 hours a week) and are actively seeking employment and/or you are receiving unemployment benefits, you would be eligible for an Unemployment Deferment (for Perkins loans only).  There is a total of 36 months available during the term of your loan.

If you are working 30 hours or more and are experiencing financial hardship, you may be eligible for an Economic Hardship Deferment (for Perkins loans only).  There is a total of 36 months available during the term of your loan. The Loan Office requires documentation to process this request.

Forms (for Perkins or Institutional Loans only)

Contact our office with questions about choosing the correct form.

Deferment
Deferment Application
Economic Hardship Deferment - Perkins Loan
Military Deferment - Perkins Loans
Total & Permanent Disability - Institutional Loans
Total & Permanent Disability Process - Perkins Loans
Unemployment Deferment - Perkins Loans
Urban Education Loan Deferment

Forbearance
Forbearance Application - Perkins or Institutional Loans
AmeriCorp Forbearance Application Process