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.

Frequently Asked Questions


Deferments

A deferment entitles you to postpone your monthly principal payment on 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.
  • If you have questions regarding your eligibility for a deferment, please contact us.

Application Process:

  • Download the appropriate deferment form listed below that applies to your situation. Be sure to read the instructions carefully when completing the deferment request. Once completed, return the form along with any additional information required to National Education.
  • 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 also defer interest payments.
    • your loan will be reported to the consumer reporting agency or agencies 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 or a Grad PLUS Loan...
    you are responsible for paying the interest all of the time. Unpaid interest will be added to your principal balance when the deferment ends.

  • If you have a Consolidation Loan...
    The Federal Government will pay the interest on the subsidized portion of the Consolidation Loan while your loan is authorized for deferment if the application was received by the lender on or after November 13, 1997. For the unsubsidized portions of a Consolidation Loan, you are responsible for paying the interest at all times. The following applies to Consolidation Loan applications received prior to this date.

    • If the loan application was received by the lender between January 1, 1993, and August 9, 1993, the government will pay the interest on your loan.
    • If the loan application was received by the lender between August 10, 1993, and November 12, 1997, and only consists of subsidized Stafford Loans, the government will pay the interest on your loan during the deferment.

Types of Deferments:

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

Get Adobe Acrobat Reader

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, download it now.

If you Log In to your account, you can use the Deferment Eligibility page to check your eligibility for these deferments.

Economic Hardship Deferment (HRD) Learn More Download Form
Education Related Deferment (EDU) Learn More Download Form
In-School Deferment (SCH) Learn More Download Form
Military Deferment (MIL) Learn More Download Form
Parental Leave/Working Mother Deferment (PLWM) Learn More Download Form
Parent PLUS Borrower Deferment (PLUS) Learn More Download Form
Public Service Deferment (PUB) Learn More Download Form
Unemployment Deferment (UNEM) Learn More Download Form

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Forbearance for Federal Loans

Forbearance allows you to temporarily postpone payments on your federal student loan while protecting your credit. In this respect it is just like a deferment. However, forbearance differs in that it is not an entitlement and the federal government will not pay interest that accrues on your loan(s). The borrower is always responsible for paying the interest costs during forbearance. Forbearance is used when the borrower is not eligible for one of the available deferments.

Eligibility:

  • Forbearance is not an entitlement but rather an agreement between you and National Education.
  • As the lender/servicer, National Education has full discretion and determines forbearance eligibility on a case by case basis.
  • Federal loans eligible for forbearance include Federal Stafford, PLUS, GradPLUS and Consolidation.
  • If you have questions regarding your eligibility for forbearance please contact us.

Application Process:

  • You must contact National Education to verbally request a forbearance.
  • 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 National Education informs you that your request has been granted.
  • A Teacher Loan Forgiveness Forbearance is available. You must complete a forbearance form and submit it to National Education.
Teacher Loan Forgiveness Forbearance Learn More Download Form

Repayment and Interest:

  • Forbearance allows you to postpone or reduce your principal payments for a specific period of time.
  • The borrower is responsible for paying all interest accrued during the forbearance period.
  • The borrower is sent a statement every 6 months while the loan(s) is in forbearance. The interest may be paid at any time during the forbearance or it is accrued and added to the loan. (capitalized)
  • Forbearance can be used to bring an account current. However, if a past due status has been reported to the consumer reporting agency or agencies, forbearance cannot remove prior delinquent reporting.
  • The borrower can make payments during forbearance without impacting eligibility.

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Forbearance for Alternative Loans

Just like with federal loans, forbearance is available for borrowers with Alternative Loans serviced by National Education. The forbearance will temporarily postpone your loan payments. Forbearance is not an entitlement. The borrower is responsible for paying all interest that accrues on your loan(s). Contact us to determine if you qualify for forbearance and how long it may be granted.

Points about forbearance for Alternative Loans to remember:

Eligibility:

  • Forbearance is not an entitlement but rather an agreement between you and National Education.
  • As the lender/servicer, National Education has full discretion and determines forbearance eligibility on a case by case basis.
  • In certain circumstances such as the borrower having his/her Federal Stafford Loan on a Military or In School Deferment, forbearance for the Alternative Loan may be extended by National Education. Please contact our office for additional eligibility information.
  • A borrower with an Alternative Loan(s) who is participating in a medical residency program, or studying for the bar exam may be eligible for administrative forbearance. Please contact our office for additional eligibility information.
  • Alternative Loans are made by private lenders and, thus, are not eligible for federal deferments.

Application Process:

  • You must contact National Education to verbally request a forbearance.
  • 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 National Education informs you that your request has been granted.

Repayment and Interest:

  • Forbearance allows you to postpone or reduce your principal payments for a specific period of time.
  • The borrower is responsible for paying all interest accrued during the forbearance period.
  • The borrower is sent a statement every 6 months while the loan(s) is in forbearance. The interest may be paid at any time during the forbearance or it is accrued and added to the loan. (capitalized)
  • Forbearance can be used to bring an account current. However, if a past due status has been reported to the consumer reporting agency or agencies, forbearance cannot remove prior delinquent reporting.
  • The borrower can make payments during forbearance without impacting eligibility.

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