Terms, conditions and steps for deferment:

• A deferment is a temporary postponement of loan repayment. A deferment is a legal entitlement that postpones loan payments for specific periods of time if borrowers meet certain conditions.
• Deferments are not automatic; they must be requested on a timely basis by the borrower. Borrowers must submit forms and documents to prove that they qualify for deferment.
• While the application for a deferment is being processed, the borrower must still continue to make payments until notification is received from the lender or servicer that the deferment has been approved.
• Assist eligible students in obtaining deferments. Provide each student with a handout outlining the different deferment types along with the appropriate time limit.
• Give the student blank deferment forms.
• General types of deferments include:
  • Full-time/half-time enrollment in an eligible school.
  • Graduate fellowship.
  • Rehabilitation training.
  • Economic hardship.
  • Unemployment.
  • Military service.
• See sample deferment letter.