Deferment/Forbearance of a Student Loan
If a borrower encounters a problem making monthly loan payments, they may be able to temporarily postpone repayment through forbearance or deferment, if they meet the qualifications detailed below. Borrowers must continue making payments on student loans until notified that their request for forbearance or deferment has been granted.
- Forbearance (Perkins Loans)
Forbearance is the temporary postponement of payments. Unlike deferment, interest continues to accrue during forbearance. You can pay your interest monthly or at the end of the forbearance. It is in your best interest to pay the interest monthly during a forbearance period, as this will allow you to avoid accrual of interest and allow you to return to paying down your principal balance immediately after the forbearance period ends. Interest cannot be capitalized on Perkins loans or any of the Institutional loans held by the University of Michigan.
Perkins loans have only 36 months of forbearance available.
Please contact Student Loan Collections for details, questions or if you have a change in status.
- Student Status Deferment (Perkins Loans)
A borrower may defer repayment of a Perkins Loan if they are enrolled at least half-time as a regular student in an eligible institution of higher education. A regular student is one who is enrolled for the purpose of obtaining a degree or certificate. An eligible school is one that has been approved by the Department of Education to participate in the Department’s Federal Student Aid Programs, even if the school does not participate in those programs. Interest will not accrue during the deferment. If a borrower is attending a school that ceases to qualify as an institution of higher education, the borrower's deferment ends on the date the school ceases to qualify.
Please contact Student Loan Collections for details, questions or if you have a change in status.
- Econ Hardship Deferment (Perkins Loans)
Federal Perkins loans are eligible for a total of 36 months of economic hardship. This deferment can be granted in periods up to 12 months at a time. Interest will not accrue during the deferment. To qualify a borrower must provide documentation showing they qualify within any of the following 4 categories:
- Have been granted an economic hardship deferment by another Federal student loan program or other Federal Perkins loan, for the same time period they are requesting this deferment.
- Receiving payment under a Federal or State public assistance program which is based on means-tested benefits, such as Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP), or State General Public Assistance.
- Serving as a Peace Corps volunteer.
- The borrower must be employed full time (30 hours or more per week) earning a total monthly gross income that doesn't exceed an amount equal to 150% of the HHS poverty guideline for their family size and state of residence. Please see the deferment request form for further details on this category.
Please contact Student Loan Collections for details, questions or if you have a change in status.
- Unemployment Deferment (Perkins Loans)
Perkins Loans are eligible for unemployment deferment. There are a total of 36 months available. Interest will not accrue during the deferment. A borrower must be receiving unemployment benefits or diligently seeking but unable to find full-time employment in the United States to qualify.
Please contact Student Loan Collections for details, questions or if you have a change in status.
- Graduate/Fellowship Deferment (Perkins Loans)
A borrower enrolled and in attendance as a full-time student in a course of study that is part of a graduate fellowship program approved by the Department of Education, and meeting the criteria detailed on the deferment form, may defer payments. A borrower may be studying at a foreign university, as long as the graduate fellowship program accepts the course of study toward completion of the fellowship program. Interest will not accrue during the deferment.
Please contact Student Loan Collections for details, questions or if you have a change in status.
- Military Service & Post-Active Duty Deferment (Perkins Loans)
Military Service Deferment
A borrower who is serving on active duty in the U.S. Armed Forces or performing qualifying National Guard duty may defer repayment on a Perkins Loan if the duty is in connection with a war, contingency/military operation, or national emergency. Interest will not accrue during the deferment.
13-Month Post-Active Duty Deferment
Borrowers who are members of the National Guard or Armed Forces Reserve, and members of the armed forces who are in retired status, are also eligible for a 13-month period of deferment on repayment of their Perkins loans following the completion of their active duty military service if they were enrolled in a postsecondary school at the time of, or within six months prior to, their activation/call to duty. National Guard/Reserve or retired members of the Armed Forces may qualify for both the post-active duty deferment and for the military service deferment, and may receive both deferments if eligible. If a student receives both deferments, the overlapping periods of deferment will run concurrently.
For members of the National Guard, active duty includes full-time duty under which a governor is authorized, with the approval of the President or the U.S. Secretary of Defense, to order a member to state active duty and the activities of the National Guard are paid for by federal funds; or state active duty under which a governor activates National Guard personnel based on state law or policy, and the activities of the National Guard are paid for by state funds. Active duty does not include a borrower who is employed full-time in a permanent position with the National Guard, unless the borrower is reassigned as part of a call-up to active duty service. Active duty also does not include duty for training or attendance at a service school.
Please contact Student Loan Collections for details, questions or if you have a change in status.
- Cancer Treatment Deferment (Perkins Loans)
A borrower receiving cancer treatment may defer payments. This deferment may cover up to one year of treatment followed by a six-month post-treatment deferment period, based on the physician’s certification. The certifying physician must be a Doctor of Medicine or Osteopathy who is legally authorized to practice medicine, and must certify that the borrower is, or was, receiving cancer treatment in the physician’s care, as well as the dates of that treatment. If a borrower’s treatment period lasts longer than twelve months, the physician may recertify that the borrower is continuing to receive cancer treatment at the conclusion of the one-year period by completing a new Cancer Treatment Deferment Request form.
Please contact Student Loan Collections for details, questions or if you have a change in status.
- Rehabilitation Training Deferment (Perkins Loans)
A borrower may defer repayment if he or she is receiving, or scheduled to receive, rehabilitation services as part of a Department of Education approved rehabilitation training program. To receive this deferment, the borrower must provide certification of the rehabilitation training. The training program must be licensed, approved, certified, or otherwise recognized by either the Department of Veterans Affairs or a state agency responsible for vocational rehabilitation, drug abuse treatment, mental health services, or alcohol abuse services. The training program must provide services under a written, individualized plan that specifies the date that services are expected to end and be structured in a way that requires the borrower’s substantial commitment to their rehabilitation. Interest will not accrue during the deferment.
Notes
- A substantial commitment from the borrower is a commitment of time and effort that would normally prevent the borrower from holding a full-time job (> 30 hours per week in a position expected to last at least 3 months), either due to the number of hours that must be devoted to rehabilitation or because of the nature of the rehabilitation.
Please contact Student Loan Collections for details, questions or if you have a change in status.
- Forbearance (NFL/NSL/HPSL/PCL/LDS)
Forbearance is the temporary postponement of payments. Unlike deferment, interest continues to accrue during forbearance. In order to qualify for a forbearance on NFL/NSL/HPSL/PCL/LDS loans, there must be extraordinary circumstances that have a short-term impact on a borrower’s ability to make scheduled payments.
You must pay your interest on a monthly basis (per HRSA regulations) while in a forbearance. Interest is not capitalized on HRSA loans.
Please contact Student Loan Collections for details, questions or if you have a change in status.
- Deferment (NSL/HPSL/PCL/LDS)
Nursing Student Loan
A borrower may defer repayment but must be enrolled at least half-time as a student in an accredited school of nursing in a course of study leading to a baccalaureate or graduate degree in nursing, or pursuing Advanced Professional Training in nursing or training to be a nurse anesthetist.
A borrower may defer repayment for active duty in a uniformed service including the National Oceanic & Atmospheric Corps and the Public Health Service, for up to 3 years.
A borrower may defer repayment if they are a volunteer member in the Peace Corps, for up to 3 years.
Health Profession Student Loans/Primary Care Loans/Loans to Disadvantaged Students
A borrower may defer repayment for full-time enrollment in a course of study at a school of medicine, osteopathy, dentistry, pharmacy, podiatry, optometry, or veterinary medicine leading to a diploma, baccalaureate or equivalent degree. For LDS accounts, the school you are now attending must participate in the LDS program. For PCL accounts, the school you are now attending must be a health professions school eligible for participation in the PCL program. For HPSL accounts, the school you are now attending must participate in the HPSL program.
A borrower may defer repayment for full-time pursuit of advanced professional training (APT), including internships and residencies. The training must be within the discipline for which the borrower received their HPSL/PCL/LDS loan. The original grace period must expire before benefits can be granted. The borrower may self-certify the certification portion of the deferment form and must submit a new form each year.
A borrower may defer repayment for participating in a Fellowship Training Program or other Related Education Activity. They may begin either activity prior to the completion of APT, but not later than 12 months after completion of the APT, internship, residency, or undergraduate work. Fellowship must be a full-time activity in research, research training, or health care policy. Related Education Activities must be part of a joint degree program or activity that is required for licensure, registration, or certification, or must be a full-time educational program in public health, health administration, or health care discipline. These activities must be related to the discipline for which the borrower received their HPSL/PCL/LDS loan. Maximum benefit is 2 years.
A borrower may defer repayment for Interruption of Studies to pursue a directly related Health Profession education activity. The activity must be related to the discipline for which they received an HPSL/PCL/LDS loan. The borrower must intend to return to the lending institution full-time to complete their studies.
A borrower may defer repayment for active duty in a uniformed service including the National Oceanic & Atmospheric Corps and the Public Health Service. Their original grace period must expire before benefits can be granted. Maximum benefit is 3 years.
A borrower may defer repayment if they are a volunteer member in the Peace Corps. The borrower’s original grace period must expire before benefits can be granted. Maximum benefit is 3 years.
Please contact Student Loan Collections for details, questions or if you have a change in status.
- Deferment/Cancellation (Nurse Faculty Loans)
Postponement of Installment Payments Prior to Cancellation
When a borrower is employed full-time as a faculty* at a school of nursing and will request partial cancellation of the loan at the end of each complete year of employment, the borrower may obtain a postponement of installment payments on the loan. The borrower must submit the Request for Postponement and Partial Cancellation Form for each period of cancellation. This form is intended to notify the lending school that repayment is not expected from the borrower. The form requires the borrower to:
- Complete Part I
- Obtain certification by the employing school of nursing in Part II
- Forward the original to the lending school
U-M Student Loan Collections will notify the borrower of the approval of the Request for Postponement and retain the form in the borrower's file. The borrower must notify Student Loan Collections of termination of full-time employment as faculty prior to completion of a year within 30 days after the last day of such employment; the loan will be placed back into repayment with installment payment(s) payable according to the borrower's repayment schedule.
*The US Department of Health and Human Services, Health Resources and Services Administration (HRSA) defines “Nurse Faculty” as one of the following: (1) employment as a full-time faculty member at an accredited school of nursing; (2) employment as a part-time faculty member at an accredited school of nursing in combination with another part-time faculty position or part-time clinical preceptor/educator position affiliated with an accredited school of nursing that together equates to full-time employment; or 3) designation of nurse faculty in a joint nurse faculty appointment serving as full-time advanced practice registered nurse (APRN) preceptor for an accredited school of nursing, within an academic-practice partnership framework.
Partial Loan Cancellation
Borrowers must request PARTIAL loan cancellation each year while employed as full-time nurse faculty at a school of nursing over a consecutive 4-year period. To receive loan cancellation, the Borrower must submit the Request for Postponement and Partial Cancellation of Loan Form to Student Loan Collections at the end of each complete year of full-time employment as faculty at a school of nursing. This form requires the borrower to:
- Complete Part I
- Obtain certification by the employing school of nursing in Part II
- Forward the form to the lending school for partial cancellation of loan
You will receive a confirmation letter when your request has been approved and processed, or denied. If the borrower takes a break from full-time employment as nurse faculty during the year, the borrower is not eligible for loan cancellation and must begin repayment of the NFLP loan immediately.
Deferment of Loan Repayment
Deferment options under the NFLP are limited.
NFLP borrowers who are ordered to active duty as a member of a uniformed service of the United States (Army, Navy, Marine Corps, Air Force, Coast Guard, the National Oceanic and Atmospheric Administration Corps, Peace Corps, or the U.S. Public Health Service Commissioned Corps) are eligible for deferment for up to 3 years. A borrower who voluntarily joins a uniformed service is not eligible for deferment, nor is a borrower who is employed by one of the uniformed services in a civilian capacity.
NFLP borrowers that graduate and are employed and decide to return to a graduate nursing education program to pursue a doctoral degree to further their preparation as nurse faculty may request deferment of payment for up to 3 years. Please contact Student Loan Collections for further information regarding a student status deferment for NFLP loans.
- NFLP borrowers that graduate and participate in post-doctoral/fellowship programs may request deferment of payment for up to 3 years (Advanced Professional Training).
Please contact Student Loan Collections for details, questions or if you have a change in status.
- Institutional Loans - Financial Arrangement Request Form (FAF)
Deferment request form for Institutional Loans. This includes Forbearance, Unemployment and Economic Hardship.
- Institutional Loans - In School Deferment Request Form
In School Deferment request form for institutional loans.