Student loan deferment lets you stop making payments on your loan for up to three years, but it does not forgive the loan. You must apply (and qualify) for deferment unless you are enrolled in school at least half-time. Interest on federally subsidized loans does not accrue during the deferment.

Does deferment hurt your credit?

A student loan deferral doesn’t directly impact your credit score since it occurs with the lender’s approval. Student loan deferrals can increase the age and the size of unpaid debt, which can hurt a credit score. Not getting a deferral until an account is delinquent or in default can also hurt a credit score.

What to do if you get a student loan deferment?

If an in-school deferment doesn’t happen automatically and you’re enrolled on more than a half-time basis, contact your school’s financial aid office who will then inform your loan servicer of your enrollment. For anything other than an in-school deferment, it will not happen automatically.

How long can you get a deferral on a student loan?

The maximum deferment time period is three years. After that, you will again be required to make payments – whether your financial picture has improved or not. Know additional situations that may qualify you for a deferment. The Department of Education offers deferments to borrowers in a few other specific situations. These include:

When does a student loan hardship deferment run out?

However, your economic hardship deferment cannot exceed a total period of three years. Other types of deferment run out when you no longer satisfy the qualifying enrollment requirements, such as the rehabilitation training program deferment, which states that you must be enrolled in an approved training program to continue receiving the deferment.

When do you get an in school deferment?

An in-school deferment pauses your loan payments when you’re enrolled in an eligible college or career school at least half-time, including graduate school, as well as six months after you graduate or leave school. Those six months are also known as the student loan grace period.