How to Defer a Federal Student Loan

Financial aid in the form of student loans can be expensive to repay. There are ways that can help you when you have periods when you have trouble making loan payments. One step is to consolidate your student loan. Other ways to defer repayment include requesting a forbearance or cancellation of your loan. It is generally difficult to discharge a federally-insured student loan by filing bankruptcy. If you work in certain careers or the military, you may be able to avoid repayment through cancellation of your loan(s). Finally, you can often have your loan balance reduced by working as a volunteer in Americorps or the Peace Corps. Read on to learn more about how to defer a federal student loan.

Instructions

1

Establish a basis for deferral, cancellation or forbearance. Generally, repayment is automatically deferred until six months after leaving school.

2

Attend college, if you wish. While are a student attending at least half-time, you can defer repayment. You will need to provide certification of attendance from your present college. Deferral is also available for periods of military, teaching or while practicing medicine in certain communities.

3

Seeking employment is another method of deferring repayment. You can utilize this ground for deferral for a total of up to three years.

4

Volunteer at an Americorps-approved agency. This can reduce your loan balance up to several thousand dollars.

5

File a request for a hardship deferral. Use of this basis can be utilized for a maximum of three years.

6

File bankruptcy. Discharge of a student loan, particularly a federally-insured loan is difficult. However, in a few cases (usually involving permanent mental or physical disability) bankruptcy can discharge these loans. You will need to file and serve an adversary proceeding in the bankruptcy court. An adversary proceeding is generally just a lawsuit filed in bankruptcy court.

7

Try to cancel your loan. Diagnosis by a physician or psychiatrist that you are permanently mentally or physically disabled can form a valid ground for cancellation of a student loan. Temporary disability only results in temporary deferral of repayment. Your doctor will need to complete a form for any claim filed using this method.

8

Request a forbearance. Any grounds available for deferral or cancellation of a private loan must be specified in your loan agreement.