What if I'm having trouble making payments?

If you are temporarily unable to make your monthly loan payment, help is available. We offer deferment or forbearance options to postpone payments for a period of time. National Education is here to work with you.

Click Here for Frequently Asked Questions

Deferments:

A deferment entitles you to postpone your monthly principal payment on Federal Stafford, Federal PLUS and Federal Consolidation Loan(s) for a specific period of time. During this time your credit will be protected.

Deferments have time limits. You will be expected to resume full payments once a deferment ends.

Eligibility:

• The criteria vary depending on the type of deferment.
• If you meet all of the eligibility requirements, then it is your right to receive a deferment.

Application Process:

• Contact us to determine if you are eligible for a particular deferment.
• If you have applied for a deferment, you must continue to make full monthly payments until National Education (your lender) informs you that your request has been granted. (Although the Federal Government allows up to 30 days to process requests for deferments, this process typically takes 10 business days or less).

Repayment and Interest:

• While you are in deferment...
  • you are not required to make any principal payments.
  • you can defer interest payments also.
  • your loan will be reported to the credit bureaus as current.
  • you can still make any size payment on the loan if you wish.


• If you have a Subsidized Stafford Loan...
  the Federal Government will pay the interest on your loan during authorized deferment periods.


• If you have an Unsubsidized Stafford Loan, or a Federal PLUS Loan...
  you are responsible for paying the interest all of the time. Unpaid interest will be added to your principle balance when the deferment ends.


• If you have a Consolidation Loan...
  The Federal Government will pay the interest while your loan is authorized for deferment:
  • if the application was received by the lender on or after 1/1/93, but before 8/10/93, or
  • if the application was received after 8/10/93 and before 11/12/97, it includes only Federal Subsidized Stafford Loans, or
  • if the application was received on or after 11/13/97, it only includes Federal Subsidized Loans.
  
  Otherwise you are responsible for the interest.

Types of Deferments

There are eight types of deferments available through National Education for loans offered under the Federal Family Education Loan Program (FFELP).

The links below will allow you to view and print the deferment forms with ADOBE ACROBAT.

The Adobe Acrobat Reader is free. If you do not already have it, get it here:

Economic Hardship Deferment (HRD)	Learn More	Download Form
Education Related Deferment (EDU)	Learn More	Download Form
In-School Deferment (SCH)	Learn More	Download Form
Parental Leave/Working Mother Deferment (PLWM)	Learn More	Download Form
Public Service Deferment (PUB)	Learn More	Download Form
Temporary Disability Deferment (TDIS)	Learn More	Download Form
Unemployment Deferment (UNEM)	Learn More	Download Form

Back to Top

---

Forbearance

Forbearance allows you to temporarily postpone payments on your student loan while protecting your credit. In this respect it is just like a deferment. However, forbearance is not an entitlement and the federal government will not help to pay the interest that accrues on your loans. Forbearances are used when borrowers are not eligibile for regular deferments.

Eligibility:

• Forbearance is not an entitlement but an agreement between you and National Education.
• The lender / servicer has full discretion and determines eligibility on a case by case basis.
• If you have questions regarding your eligibility for a deferment or forbearance please contact us.

Application:

• You must contact National Education to either verbally request forbearance or complete a forbearance agreement.
• You may be asked to provide an outline of your financial obligations in order to qualify.
• You must continue to make your full monthly payments until your lender informs you that your request has been granted.

Repayment / Interest:

• Forbearance allows you to postpone or reduce your principal payments for a specific period of time.
• Each forbearance may be issued for a period of 12 months.
• National Education's maximum accumulated amount of time for forbearances is 48 months.
• The borrower is responsible for paying all loan interest during a forbearance period.
• There is an option to either pay the interest on a monthly or quarterly basis, or have it added to the loan.
• The borrower can make over payments during a forbearance without affecting eligibility.

If you want a forbearance, contact us to verbally request forbearance or download the forbearance form.

Back to Top