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Student Loan Service Center

Deferments

A borrower is entitled to have the repayment of a loan deferred under certain circumstances.  A deferment is a period of time during which the borrower is not required to repay the loan principal. Interest will not accrue on Federal Perkins or Nursing  loans during most types of deferment.  Interest will accrue during deferment on most other types of institutional loans.

A borrower must apply for a deferment in writing by using a deferment form obtained from ECSI or the Student Loan Service Center. The borrower must file a form at least once a year for as long as the deferment can be claimed. The borrower must immediately report any change in deferment status to ECSI or the Student Loan Service Center.

NOTICE: The 1998 reauthorization of regulations governing deferments of Perkins Loans (NDSL) has amended some of the deferment provisions effective October 7, 1998.

For Perkins Loans Made Before July 1, 1993
A borrower of a Perkins Loan made before July 1, 1993 may defer repayment if he or she is enrolled at least half time as a regular student in an eligible institution. Such a borrower may also defer repayment for up to three years and interest will not accrue while he or she is:

  • A member of the U.S. Army, Navy, Air Force, Marines , or Coast Guard;
  • A Member of the National Guard or the Reserves serving a period of full–time active duty in the armed forces;
  • An officer in the Commissioned Corps of the U.S. Public Health Service;
  • On full–time active duty as a member of the National Oceanic and Atmospheric Administration Corps;
  • A Peace Corps volunteer;
  • A volunteer under Title I, Part A of the Domestic Volunteer Service Act of 1973 (ACTION programs);
  • A full–time volunteer in service for a tax–exempt organization that the Department has determined is comparable to Peace Corps or ACTION service, or
  • Temporarily Totally Disabled or unable to work because he or she must care for a spouse or other dependent who is so disabled.

A Perkins Loan or NDSL borrower is entitled to a 6–month grace period after each type of deferment (a "post–deferment" grace period).

For ALL PERKINS LOANS
A borrower may defer loan repayment and interest does not accrue while he or she is:

  • Enrolled at least half time as a regular student in an eligible institution;
  • Enrolled and in attendance as a regular student in a course of study that is part of a graduate fellowship program approved by the Department;
  • Engaged in graduate or postgraduate fellowship–supported study (such as a Fulbright grant) outside the United States;
  • Enrolled in a course of study that is part of a Department approved Rehabilitation Training program for disabled individuals; (3 year limit)
  • Seeking and is unable to find full–time employment; (3 year limit)
  • Suffering an economic hardship;

Effective 07/01/2006: for Perkins Loans made on or after July 1, 2001
For purposes of this new deferment, the following terms are defined in new section 481(d):

  • Active duty has the meaning for that term included in section 101(d)(1) of title 10, United States Code, but does not include active duty for training or attendance at a service school.
  • Military operation means a contingency operation as defined in section 101(a)(13) of title 10, United States Code.
  • National emergency means the national emergency by reason of certain terrorist attacks declared by the President on September 14, 2001, or subsequent national emergencies declared by the President by reason of terrorist attacks.
  • Serving on active duty during a war or other military operation or national emergency means service by an individual who is a Reserve of an Armed Force ordered to active duty under section 12301(a), 12301(g),12302,12304,04 12306 of title 10, United States Code, or any retired member of an Armed Force ordered to active duty under section 688 of such title, for service in connection with a war or other military operation or national emergency, regardless of the location at which such active duty service is performed. This term also includes any other member of an Armed Force on active duty in connection with such emergency or subsequent actions or conditions who has been assigned to a duty station at a location other than the location at which such member is normally assigned.
  • Qualifying National Guard duty during a war or other military operation or national emergency means service as a member of the National Guard on full–time National Guard duty (as defined in section 101(d)(5) of title 10, United States Code) under a call to active service authorized by the President or the Secretary of Defense for a period of more than 30 consecutive days under section 502(f) of title 32, United States Code, in connection with a war, other military operation, or a national emergency declared by the President and supported by Federal funds.

Engaged in certain types of service that qualify the borrower for cancellation of the loan.

A Perkins Loan or NDSL borrower is entitled to a 6–month grace period after each type of deferment (a "post-deferment" grace period).

 

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