Deferments allow you to temporarily postpone payment of a loan. You must apply and be approved for deferments. It is important to continue making monthly payments until you receive written notice the deferment has been approved.
If you place your loan or loans in deferment, interest accrues and, at the end of your deferment, capitalizes. If you defer payments for a significant amount of time this can substantially increase your loan balances. While this may increase your total repayment obligation, it is generally better then dealing with the potential consequences of delinquency and default.
Payments are not required during periods of deferment. However, ACPE strongly encourages borrowers to pay the monthly interest accrual to avoid increasing the total amount owed.
Deferment for State Loan Programs (click here to view the State Loan Programs)
This deferment is intended to cover a repayment period when a borrower is enrolled at least half-time as a student. To qualify, the borrower must be attending at least half-time in a course of study, in good standing, at an eligible institution. Medical interns and residents (except dental interns) cannot be certified as enrolled students for the purposes of in-school deferment eligibility, unless they are concurrently enrolled in a Ph.D. program.
If you are seeking but unable to obtain full-time employment in the United States, you may qualify for an Unemployment Deferment. This deferment has a 12-month maximum. You may use this deferment only once during the life of the loan. If you request the deferment for less than the 12-month maximum, you will forfeit the remaining months and any unused portion of the deferment period is nontransferable to any future period of unemployment.
Active Duty Military
If you are serving full-time active duty in the United States Armed Forces or Public Health Service Commissioned Corps you may be eligible to postpone repayment with a deferment.
Deferment of payment available to borrowers who are having financial hardship and request temporary relief while experiencing one of the following situations: Natural Disaster, AmeriCorps, Personal Tragedy, Maternity, Seeking Employment outside of the United States. A natural disaster is the effect of a natural hazard (e.g. flood, tornado, volcano eruption, earthquake, or landslide) that affects the environment, and leads to financial, environmental and/or human losses.
If you serving as a full-time volunteer for the Peace Corps or a Corporation for National & Community Service Program such as Action, Domestic Service, or VISTA you may be eligible to postpone repayment with a deferment. Volunteer service in the AmeriCorps program is a separate deferment category.
If you are serving in an internship/residency program required to begin professional service or practice, or servicing in a graduate fellowship program, you may be eligible to postpone repayment with a deferment.
You may be eligible for a medical deferment if you are 50% or more disabled, and unable to work or attend school, and borrowed loans before the 1996-97 school year; or if you are 100% disabled and unable to work or attend school and you borrowed loans for the 1996-97 school year or after.