Deferments for Federal Loans

For Students > Financial Aid > Loans > Deferments for Federal Loans

Life isn't predictable. Things happen. At Mendocino College, we understand — that's why we are here to help you and offer a number of deferment options to our federal student loan borrowers. Postponing your payments for a period of time can give you the flexibility and breathing room you need to deal with life's curveballs — whatever they may be.

Interest continues to accrue on your loans during a deferment, so you may end up increasing the total amount you repay (except with subsidized Stafford loans, when the government pays the interest). But it's better than the long-term consequences of delinquency and default, and you may improve your monthly cash flow.

If you don't qualify for a deferment, or have private loans, you may be able to postpone payments with a forbearance. Go to your account at: www.myedaccount.com

Deferment options and downloadable forms can be found through logging into your account online.

Here is some of the options you may want to check into below. Please remember to continue making monthly payments until you have been notified you that the deferment or forbearance have been approved.

1. Economic Hardship ended July 1, 2009

2. In-School

3. Military

4. Parental Leave/Working Mother

5. PLUS Borrower with Dependent Student

6. Public Service

7. Temporary Total Disability

8. Unemployment

1. Economic Hardship - No longer available
The Economic Hardship deferment is for borrowers who:

Earn less than the poverty line income for a family of two in their state or exceed a federally defined debt-to-income ratio; and
Had no outstanding balance on a federal student loan as of the date they obtained a loan on or after July 1, 1993; and
Meet the economic hardship deferment requirements.

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2. In-School
The In-School deferment is for borrowers enrolled at least half-time at an eligible school. The borrower must be a U.S. citizen or national if attending a school located outside the U.S.

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3. Military
A military deferment is available for a period during which a borrower is serving on active duty during a war or other military operation or national emergency, or performing qualifying National Guard duty during a war or other military operation or national emergency, and if a borrower is serving on or after October 1, 2007, for the 180-day period following the demobilization date for the qualifying service. Effective October 1, 2007, a borrower who is a member of the National Guard or other reserve component of the U. S. Armed Forces (current or retired) and who is called or ordered to active duty while enrolled at an eligible school, or within 6 months after having been enrolled, is eligible for a deferment during the 13 months following the conclusion of the active duty service, or until the date the borrower returns to enrolled student status, whichever is earlier.

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4. Parental Leave/Working Mother
The Parental Leave/Working Mother deferment form is for borrowers who are:

On parental leave caring for a newborn or newly adopted child, with federal student loans disbursed before July 1, 1993 or with an outstanding balance on a federal student loan disbursed before July 1, 1993 when they obtained a loan disbursed on or after July 1 1993; or
Working mothers with at least one child not yet in first grade; working at a job paying no more than $1 over the federal minimum wage; and have federal student loans disbursed before July 1, 1993 or with an outstanding balance on a federal student loan disbursed before July 1, 1993 when they obtained a loan disbursed on or after July 1 1993.

5. PLUS Borrower with Dependent Student
The PLUS Borrower with Dependent Student deferment is for parent borrowers whose dependent (for whom they took out the loan) is engaged in at least half-time study at an eligible school or in a rehabilitation training program.

To be eligible for this deferment you must have federal student loans disbursed between July 1, 1987, and July 1, 1993 or the parent borrower had an outstanding balance on a federal student loan made before July 1, 1993, when the parent obtained a loan disbursed on or after July 1, 1993.

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6. Public Service
The Public Service deferment form is for borrowers with federal student loans disbursed before July 1, 1993, or borrowers who had an outstanding balance on a federal student loan made before July 1, 1993, when they obtained a loan disbursed on or after July 1, 1993.

The deferment is also available to a PLUS borrower if that borrower has a PLUS loan first disbursed before August 15, 1993.

Borrowers applying for a Public Service deferment must be:

On active duty in the U.S. Armed Forces or the National Oceanic and Atmospheric Administration; or
Serving in the Public Health Service or the Peace Corps; or
Domestic or tax-exempt volunteers.

7. Temporary Total Disability
The Temporary Total Disability deferment is for borrowers who are:

Unable to attend school or be gainfully employed for at least 60 days due to illness or injury that occurred after receiving the loan; or
Caring for a disabled spouse or dependent who requires continuous nursing or similar services during a period of at least 90 consecutive days

8. Unemployment
The Unemployment deferment is for borrowers looking for, but unable to find full-time employment in the U.S.

Full-time employment is defined as at least 30 hours of work per week that is expected to last at least 3 months.
The deferment request must include self-certifying statements describing the borrower’s conscientious search for full-time employment.

Created: November 21, 2008 @ 12:24 PM
Last Modified: November 14, 2011 @ 09:50 AM