Six Student Loan Deferment And Forbearance Options

  • June 13, 2016
  • By: Greenpath Financial Wellness

Following up on our earlier post on Student Loan Repayment Options, this week, we’ll talk about student loan deferment and forbearance options. To recap:

According to a recent New York Federal Reserve report, US student loan debt has surpassed $1.3 trillion and continues to grow.  The average 2016 college graduate has $37,172 in student loan debt, up six percent from last year.

Every day, GreenPath assists people who are stressed out by student loan debt.  Many contact us because they are confused by their repayment and deferment options. In this post, let’s review repayment programs and options.


Deferment or forbearance lets you temporarily suspend making your student loan payments. However, this is typically not your best loan repayment option.  Unless you have subsidized loans, interest charges will continue to accrue and the size of the loan will continue to grow during the deferment period.

Education Deferment – As long as you are attending school at least half-time, payments on the loan can be deferred until after you leave school. Usually, loan payments will resume six months after half-time enrollment ceases.

Economic Deferment – You may qualify for an economic deferment if you are experiencing economic hardship due to low income.

Unemployment Deferment – If you can’t find a job, you may be eligible for an unemployment deferment for up to three years after you get out of school.

Disability / Rehabilitation Deferment – You may qualify for a loan deferment if you’re unable to work due to an injury or illness, if you’re caring for a dependent or spouse that is disabled, or if you’re undergoing rehabilitation for injury or illness.

Family Leave Deferment – A parental or family leave deferment may be available if you can’t work or attend school because you’re pregnant or caring for a newborn or a newly adopted child.

Military Deferment – You may be eligible if you’re on active duty as a member of the armed forces, or serving full-time in the National Guard or Reserves.


GreenPath’s student loan experts are ready to assist you in understanding your student loans, exploring your repayment options, and dealing with your student loan lenders.  Click here to learn more.  Or you can call GreenPath’s toll-free Student Loan Helpline at 855-400-3718.