A “deferment” is a period of time in which repayment of both your principal balance and accrued interest are temporarily delayed. While the government may pay interest on Direct Subsidized Loans, Federal Perkins Loans, or Subsidized Federal Stafford Loans during a deferment, it will not pay interest on unsubsidized or PLUS loans.

If you have Direct Loans, Federal Family Education Loans (FFEL), or Perkins Loans, you may be eligible for deferment during: at least half-time enrollment at a college or career school; study in an approved graduate fellowship program or rehabilitation-training program for the disabled; active-duty military service during a military operation, national emergency, or war; or thirteen (13) months following the conclusion of active-duty service. Deferment may also be available for no more than three years during a period of economic hardship, unemployment, or inability to secure full-time employment. Visit for more information.

Remember that while your repayment is temporarily delayed during deferment, you may still be responsible for paying the interest which accrues during that time, and this interest maybe “capitalized,” meaning it could be added to your principal balance.

If you are struggling with student loan debt, contact an experienced student loan attorney today for a free consultation.