Login Setup
Log In to create
your User Name
and Password.
Create User Name
Create Password
Forgot User Name
or Password?
Deferment and Forbearance Q & A
Q. What is the difference between deferment and forbearance?
A: A deferment entitles you to postpone your monthly principal payment on Federal Stafford, Federal Grad PLUS and Federal Consolidation Loan(s) for a specific period of time. During this time your credit will be protected. A borrower should always explore deferment options first.
Forbearance allows you to temporarily postpone payments on your student loan while protecting your credit. However, unlike a deferment, forbearance is not an entitlement and the federal government will not help to pay the interest that accrues on your loans. Forbearance is used when the borrower is not eligible for a deferment.
Q. What types of deferments does National Education offer?
A: Certain deferment types are restricted to specific first disbursement dates of the loan. Below is a list of possible deferments:
- Economic Hardship Deferment
- Graduate Fellowship Program Deferment
- In School At Least Half Time Deferment
- Parental Leave Deferment
- Temporary Total Disability Deferment
- Unemployment Deferment
- Working Mother Deferment
- Internship/Residency Program Deferment
- National Oceanic & Atmospheric Administration Deferment
- Peace Corps Deferment
- PLUS Loan Student In-School Deferment
- Public Health Service Deferment
- Rehabilitation Training Deferment
- Tax Exempt Organization Deferment
- Teacher Shortage Area Deferment
- Action Program Deferment
Each option has requirements a borrower must meet in order to qualify.
Q. How long does a deferment or forbearance last?
A: A deferment or forbearance is given in various increments depending on the need of the borrower or for the time allowed depending on the deferment type. It is possible to max out deferment and forbearance time. Contact us to ensure you utilize the best options for your loans.
Q: How will I know if my request was granted?
A: National Education Servicing will contact you in writing informing you of the decision. It is important to continue to make payments until your deferment or forbearance is granted. Submitting a request does not place you in deferment or forbearance status.
Q: Will I be responsible for interest during a deferment or forbearance?
A: For subsidized federal loans in deferment, the government will pay any interest that accrues during that the deferment period. For unsubsidized loans, interest will continue to accrue during the deferment period and be the responsibility of the borrower.
The government does not pay any interest on any loan type of loan while in forbearance.
You do have the option to pay accrued interest while in deferment or forbearance or you can elect to have the interest added to the principal. Interest capitalization might work differently for private loans. It is best to contact National Education Servicing for details on interest capitalization during deferment or forbearance periods.
Q: How many credits is considered half-time enrollment?
A: Each school makes their own determination. Please contact your school for more information.
Q: Will my monthly payment change when repayment resumes after a deferment or forbearance period?
A: The monthly payment amount will not change when subsidized Stafford Loans are deferred. All unsubsidized loans (Stafford, PLUS, and GradPLUS) that are deferred or put in forbearance will result in interest charges assessed to the borrower. When this occurs, any unpaid interest is accrued and added to the loan (capitalization). Prior to repayment commencing, a new monthly payment is recalculated based on the outstanding loan amount.