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STUDENT LOAN BORROWER INFORMATION
DEFERMENTS
A deferment allows you to defer principal during the deferment period, but may or may not defer interest depending on the type of deferment requested, plus a post-deferment grace period of six consecutive months. No payments are required during this deferment period. Borrowers must reapply for additional deferment periods. The maximum time allowed is three years, for some deferments, and may extend many years depending on how long you are in an in-school deferment, over the life of the loan. Supporting documentation of your claim is required.
You can find out more information at https://studentaid.gov/manage-loans/lower-payments/get-temporary-relief.
Consolidations
If you have multiple student loans, you may be able to combine them into one loan with a fixed interest rate based on the average of the interest rates on the loans being consolidated. To apply and learn about loan consolidation, click here.
A Direct Consolidation Loan allows you to consolidate multiple federal education loans into one loan at no cost to you.
Through your completion of the free Federal Direct Consolidation Loan Application and Promissory Note, you will confirm the loans that you want to consolidate and agree to repay the new Direct Consolidation Loan.
Once the consolidation is complete, you will have a single monthly payment on the new Direct Consolidation Loan instead of multiple monthly payments on the loans you consolidated.
You can consolidate your loans at https://studentaid.gov/app/launchConsolidation.action
*Consolidations may increase your interest rate and you may lose cancellation benefits.
FORBEARANCE
Forbearance defers only the principal. The interest continues to accrue and can be paid monthly during the period or in a lump sum at the end. There is no grace period on forbearance requests. The borrower must reapply for any additional forbearance periods. The maximum time allowed is three years over the life of the loan. Supporting documentation of your claim is required.
You can find out more information at https://studentaid.gov/manage-loans/lower-payments/get-temporary-relief.
CANCELLATIONS
Cancellation with deferment defers both the principal and interest during the borrower’s period of service, which schools also grant loan cancellation. No payments are required during this deferment period. Borrowers must submit deferment/cancellation form annually during the five-year period of completed service. Supporting documentation of your claim is required.
You can find out more information at https://studentaid.gov/manage-loans/forgiveness-cancellation/perkins.
TOTAL AND PERMANENT DISABILITY DISCHARGE
A total and permanent disability (TPD) discharge relieves you from having to repay a William D. Ford Federal Direct Loan (Direct Loan) Program loan, a Federal Family Education Loan (FFEL Program loan, and/or a Federal Perkins Loan or to complete a TEACH Grant service obligation.
To qualify for a TPD discharge, you must complete and submit a TPD discharge application, along with documentation showing that you meet our requirements for being considered totally and permanently disabled, to Nelnet, the servicer that assists the U.S. Department of Education with the TPD discharge process. Supporting documentation of your claim is required.
You can find out more information at https://disabilitydischarge.com/default.