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Direct Loan Servicing

Direct Loan Consolidation

Default occurs when you fail to make payment on a loan after a set period of time. For the Direct Loan Program, it occurs when you become 270 days delinquent on your loan if you're making monthly payments, or 330 days delinquent if you pay less often than monthly.

If you ever have a problem making your monthly loan payments, you may be able to postpone repayment through deferment or forbearance, which are explained below. There are various types of deferment and forbearance, so you can click on the appropriate link to get more information and to download the different forms. If you have questions about completing a form, please call the Direct Loan Servicing Center at 1-800-848-0979.

If you want additional information to help you avoid default, visit the Department's Debt Collection Service website.

Deferment

Forms and information

A deferment is a postponement of payment on a loan, during which interest does not accrue if the loan is subsidized.

The federal government pays the interest charged on subsidized Direct Stafford and consolidation loans during a deferment period. However, you are responsible for the interest charged on all other Direct loans during a deferment period. You may either pay the interest as it accrues or allow it to accumulate and be capitalized when the deferment period ends.

If you have Direct loans only, you may defer repayment if you meet specific conditions. For more information call 1-800-848-0979.

Forbearance

Forms and information

If you can't make payments on your Direct loan for reasons such as unexpected personal problems or poor health and you don't qualify for a deferment, you may request forbearance of loan payments. During forbearance, you may make either no payments or smaller payments than originally scheduled for a limited period of time. You may request forbearance of principal, interest, or both. Note that even if you receive a forbearance for the interest, it will continue to accumulate during the forbearance period and will be capitalized when the forbearance ends.

You may be eligible for forbearance if you meet specific conditions. For more information call 1-800-848-0979 or visit the Direct Loan Servicing website.