Deferments & Forbearances

Deferment

Deferment is a period of time during which you are not required to make payments of loan principal. There are certain eligibility requirements you must meet in order to qualify for a deferment. The Repayment Wizard (discussed below) can help you sort through these requirements.

If your loan(s) is a subsidized Stafford loan, the federal government will pay the interest that accrues during the deferment period. If your loan(s) is not subsidized, you are responsible for the interest that accrues during the deferment period.

Forbearance

If you are unable to make your scheduled payments and do not qualify for a deferment, you may ask CFI to temporarily reduce the amount of your payments or allow you to temporarily stop making payments. This process is known as forbearance. With forbearance, unlike a deferment, you are responsible for the interest that accrues on subsidized Stafford loans and must make periodic interest payments or request that the interest be capitalized at the end of the forbearance period. Forbearance is normally granted in six-month increments; however, forbearance can be granted in increments of up to one year.

Repayment Wizard

The fastest and easiest way to request a deferment is to use the Repayment Wizard. By asking you a series of questions, the Repayment Wizard can determine if you are eligible for a deferment. In some instances, you may even be able to apply for your deferment online.