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If you are experiencing difficulty in making your student loan payments, you may qualify for a deferment or forbearance. A deferment is an entitlement, and if you meet specific criteria and demonstrate eligibility, you may not be denied a deferment. You are not required to make payments during a deferment; if you have a Federal Stafford Loan, the government will pay interest that accrues during a deferment. Borrowers are responsible for interest that accrues on an Unsubsidized Federal Stafford Loan during a deferment.
Remember: Servicers are organizations or companies contracted by lenders to perform loan originations, due diligence procedures and/or collection and reporting functions on student loan portfolios for lenders. Servicers administer loans on behalf of lenders and secondary markets and also apply deferments and forbearances for you when needed.
The type of deferment for which you may be eligible depends on the type of loan and the date on which you received your first FFELP loan. Loans may be deferred if you:
- re-enroll in school at least half-time
- are unemployed
- experience economic hardship
- engage in a graduate fellowship program
- are involved in rehabilitation training
Loan Discharge
Federal student loan debt is cancelled entirely if a student loan or PLUS borrower becomes totally and permanently disabled or dies. Other conditions in which student loan debt may be discharged either partially or in full include bankruptcy filing, school closure or false loan certification, or an unpaid refund from the school. Check with your servicer for further details.
Check with your lender or servicer for further details.
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