| If you have a Federal Perkins Loan, a Defense loan or a
National Direct Student Loan (NDSL) you may be eligible to
temporarily defer payment on the loan or to
cancel part or all
of it.
Important: The information in this website is intended
to be general in nature and to address the most common types of
deferment and cancellation. Not every type of deferment or
cancellation is described in this website. In some cases,
eligibility for deferment and/or cancellation depends on the
type of loan and/or the date on which the loan was borrowed.
There are also specific definitions of certain eligibility
criteria. The deferment conditions described on the web site
apply to all Perkins/NDSL/Defense loans, regardless of when the
loan was made; there are additional deferments under the Perkins
Loan Program, but they only apply to Perkins/NDSL/Defense loans
made before July 1, 1993
The Federal regulations governing administration of the Defense
loan, NDSL and Federal Perkins Loan programs (specifically
34 CFR 674 Subpart B and
Subpart D) provide more detailed information on deferment
and cancellation. However, please feel free to submit a
deferment or cancellation request to your loan holder; you will
be notified if further information is needed or if you do not
qualify.
Deferment
What is deferment?
During a period of deferment, you are not required to make
payments toward your loan. Interest does not accrue during
periods of deferment.
Do I qualify for deferment?
Depending on the type of loan you have, and when that loan
was borrowed, you may be eligible to defer repayment of your
loan if you are:
How do I apply for deferment?
There is no standard application form for deferment. If your
loan holder is not the U.S. Department of Education (ED), please
contact your loan holder for instructions.
The following instructions apply only if ED is your loan
holder.
To apply, simply send a written request to ED. Along with
your request, please include any documentation specified for
that condition in the deferment table below (after reviewing
your request, ED may require that you submit additional
information). In your request, please specify
- the condition that makes you eligible for deferment (from
the deferment table below)
- the date that condition began and the date it is expected
to end (if you don’t know when it is expected to end state
that the condition is “indefinite”)
Please include the following signed statement in your
deferment request:
“I agree to notify ED immediately if my status changes. The
information I have provided is true and accurate to the best of
my knowledge.”
Here is a sample deferment request.
If you are applying for deferment on the basis of service
that qualifies you for cancellation,
please read this.
How long may I defer payment on my loan?
There is no limit to how long you can defer payment on your
loan while you are enrolled:
- At least half-time in an eligible institution, or
- In a graduate or post-graduate fellowship program, or
- In a rehabilitation program for disabled individuals
You may only defer payment for up to a total of three years
on the basis that you are:
- Seeking but unable to find full-time employment
- Experiencing economic hardship
You may defer payment while you are performing service that
qualifies you for cancellation.
Deferment Types
| Eligibility Condition |
What to Include With Your Deferment Request |
| In School You must be enrolled in an eligible institution at least half-time. |
An enrollment verification form
(which your school can provide to you) |
| Graduate or Post-Graduate Fellowship |
A certification that you have
been accepted or are engaged in full-time study in an eligible graduate or post-graduate fellowship program |
| Rehabilitation Training Program for Disabled Individuals |
A certification from an eligible rehabilitation agency that you are either receiving or are scheduled to receive rehabilitation training services from the agency |
| Unemployed You must be seeking but unable to find full-time
employment |
Evidence that you are not
employed full-time (e.g., unemployment benefits, evidence of
part-time employment),
and
Evidence that you have been denied full-time employment
(e.g., a rejection letter from a prospective employer) |
| Economic Hardship |
A completed
Statement of Financial Status,
or
Documentation showing that you have been granted an
economic hardship deferment under either the Federal Family
Education Loan Program or the William D. Ford Direct Loan
Program,
or
Documentation showing that you are receiving payment
under a Federal or state public assistance program |
| Service which may qualify you
for cancellation |
See the
Cancellation Types
table |
Cancellation
What is cancellation?
Cancellation rewards individuals who perform certain types of public service
or are employed in certain occupations. For each complete year of service, a
percentage of the loan may be canceled. The total percentage of the loan that
can be canceled depends on the type of service performed—in some cases 100% of a
loan may be canceled. You cannot receive a refund of money you paid toward a
loan even if you were eligible, or eventually become eligible, to cancel that
portion of the loan.
Do I qualify for cancellation?
Depending on the type of loan you have, and when that loan was borrowed, you
may be eligible to cancel part or all of your loan if you have served as a:
If a loan defaults and has been accelerated, an individual loses his or her
eligibility for cancellation for services performed on or after the date of
acceleration.
How do I apply for cancellation?
There is no standard application form for cancellation. If your
loan holder is not the U.S. Department of Education
(ED), please contact your loan holder for instructions.
The following instructions apply only if ED is your loan holder.
To apply for cancellation, simply send a written request to ED at the end of
each year of your service. Note: you may apply for deferment of your loan at the
beginning of each year of your service; by doing so, you will not be required to
make payments while performing the qualifying service.
Along with your request, please include any documentation specified for that
condition in the cancellation table below (after reviewing your request, ED may
require that you submit additional information). In your request, please specify
- the condition that makes you eligible for cancellation or deferment (from
the cancellation table below)
- the dates on which your service began and ended
Please include the following signed statement in your cancellation request:
"The information I have provided is true and accurate to the best of my
knowledge."
Please include the following signed statement in your deferment request:
"I agree to notify ED immediately if my status changes. The information I
have provided is true and accurate to the best of my knowledge."
Here is a sample
cancellation deferment request.
Cancellation Types
(You may also defer your loan while performing the qualifying service)
| Eligibility Condition |
What to Include With Your Cancellation or
Deferment Request |
| Peace Corps or
ACTION Program |
Any official document issued by the agency,
including a signed letter on official letterhead, that indicates your dates
of volunteer service |
| Teacher
To be eligible, you must be teaching in
|
A statement on school letterhead, signed by the
principal of your school, indicating your dates of service |
| Military
You must be a member of the U.S. Army, Navy, Air Force, Marine Corps or
Coast Guard and you must be serving in an
area of hostilities that qualifies
for special pay. |
A copy of recent orders or a signed statement
on official letterhead from your commanding officer indicating your dates of
service |
| Nurse or Medical
Technician |
Any official document, including a letter on
official letterhead, issued by your employer that indicates your position
and dates of service |
| Law Enforcement or
Corrections Officer
You must be employed full-time in a local, State, or Federal law
enforcement or corrections agency, and you must be either a sworn law
enforcement or corrections officer or a person whose principal
responsibilities are unique to the criminal justice system. |
Any official document, including a letter on
official letterhead, issued by your employer that indicates your position
and dates of service |
| Head Start
You must be regularly employed by a Head Start Program in a full-time
professional capacity to carry out the educational part of the Head Start
Program. |
Any official document, including a letter on
official letterhead, issued by your employer that indicates your position
and dates of service |
| Child or Family
Services
You must be an employee of a child or family services agency, and you
must be providing services directly and exclusively to high-risk children
from low-income communities |
Any official document, including a letter on
official letterhead, issued by your employer that indicates your position
and dates of service |
| Professional
provider of early intervention services
You must be a full-time provider of early intervention services in a
public or other nonprofit program under public supervision by the lead
agency as authorized by the Individuals with Disabilities Act |
Any official document, including a letter on
official letterhead, issued by your employer that indicates your position
and dates of service |
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