About Student Loan Deferments

Student Loan Deferments

If you are a Direct Loan recipient and are currently enrolled, and if you have been contacted by your loan servicer regarding Direct Loan repayment, you may want to consider completing an In-School Status Deferment form (you haven’t used up your 6 month grace period while you’re enrolled at least half-time) or an In-School Deferment form (if you return to school at least half-time after using up your 6 month grace period). A form can be requested from your loan servicer. Return the completed form to UMFK. Forms are available from the Federal Student Aid Forms Library.

What is a Student Loan Deferment?

A student loan deferment lets qualified applicants stop making payments on their loans or reduce their payments but does not cancel the loan. No interest accrues on federally subsidized loans during the deferment period because the government picks up the interest payments. If loans are unsubsidized, interest does accrue and is added to the amount due at the end of the deferment period.

Do I Need to Apply?

Most federal student loan deferments require that you apply. Only one type, known as in-school deferment, is automatic if you are enrolled at least half-time. If you enroll at least half-time but do not automatically receive a deferment, you should contact the school where you are enrolled and/or your loan servicer.

Note: UMFK reports student enrollment information to the Clearing House (CH) monthly. Once your enrollment is confirmed by the CH to be at least half-time, your In-School Status Deferment or your In-School Deferment will be reviewed. It could take up to 60 days for this process to take place. If your enrollment is not resolved within this timeframe, contact UMFK’s Registrar’s Office and your servicer.

If you believe you qualify for other types of deferment, you will need to apply.

About Loan Servicers

A loan servicer is a company that is assigned to handle the billing and other services on your federal student loan on behalf of the Department of Education. Their service is at no cost to you. Your loan servicer will work with you on repayment options, such as income-driven repayment plans and loan consolidation, and will assist you with other tasks related to your federal student loans.

The Department of Education will assign your loan to a loan servicer after your loan amount is first disbursed (paid out). Your loan servicer will contact you after that. Keep your contact information up to date with your school and loan servicer when you:

If you are no longer in school, contact your loan servicer when you:

It is highly recommended that you keep your servicer informed of any changes to the information listed. Otherwise, loan repayment could be more costly to you in the long run.

Types of Loan Deferments

There are different types of deferments and deferment forms. Please make sure to complete the correct form.

Some types of deferments include, but are limited to:

For more information about these deferments, contact your loan servicer. To find out who your loan servicer is, call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.

Loan Servicer Contact Information