Repaying Student Loans: What if I Can't Make ANY Payment?

Although there are a lot of options for repaying your student loans there may honestly be a time in your life where you just can’t make a payment. If that’s the case your best bet is to see if you can qualify for a Deferment. Under a deferment your Subsidized Stafford Loans would not gain any interest, however all other loans would continue to accrue. If you click the deferment types I have provided a link to the forms for each of these deferments and they will all require various forms of documentation.

UNEMPLOYMENT DEFERMENT
Eligible loans for this deferment: FFEL, Direct, Perkins, and PLUS Loans
Maximum Length of Deferment: 36 months, but applied 6 months at a time
To qualify you must be:

Actively looking for full-time employment in the US at any level and be registered with an unemployment office within 50 miles of your address. Temp agencies do not qualify as being registered with the unemployment office.
If you are renewing your unemployment deferment you must state that you have actively made no less than 6 attempts at finding full-time employment in the last 6 months.

You must be eligible for benefits through unemployment. You will have to submit documentation to prove this.

ECONOMIC HARDSHIP DEFERMENT
Eligible loans for this deferment: FFEL, Direct, Perkins, and PLUS Loans
Maximum Length of Deferment: 36 months, but applied in 1 year increments
To qualify one of the following must be true:

You are receiving or have received payments from a state or federal public assistance program (Examples: General Public Assistance, Temporary Assistance for Needy Families (TANF), Food Stamps, or Supplemental Security Income (SSI).
You are serving as a volunteer with the Peace Corps (in this case you would have to attach documentation of your service and the time you have been in.
You work FULL-TIME and have a monthly income that is not greater than either the Federal Minimum Wage OR 150% of the poverty guide for your state and family size (you must provide income documentation in this case).

IN-SCHOOL DEFERMENT
Eligible loans for this deferment: FFEL, Direct, Perkins, and PLUS Loans
Maximum Length of Deferment: Unlimited
To qualify one of the following must be true:

Enrolled AT LEAST HALF-TIME at an eligible school
If you are the borrower of a Federal PLUS loan that was disbursed after July 1, 2008, during the period of 6 months after at least half time enrollment is ceased.

EDUCATION RELATED DEFERMENT
Eligible loans for this deferment: FFEL, Direct, Perkins, and PLUS Loans (Consolidation Loans DO NOT qualify)
Length of Deferment: Begins on the date that you qualify and ends on either the day you no longer qualify or the date listed on your documentation.

To qualify you must meet one of the following requirements:

Engaged in a Graduate Fellowship full-time
Engaged in a Rehabilitation Training Program Full-Time
Engaged in a Residency/Internship program at a hospital, healthcare facility, or higher education institution.
Engaged in a Residency/Internship program at any other organization or institution.
Teaching in an area that is designated as having a Teacher Shortage

PLUS DEFERMENT
Eligible loans for this deferment: Parent PLUS Loans
Length of Deferment: Begins on the date that the student is enrolled at least half time and ends on the earlier date of the day the student is no longer enrolled at least half time, or the date certified by an authorized official.
To qualify your student must meet one of the following requirements:

Enrolled in an eligible school at least half time
Engaged in a rehabilitation training program full time
You may also request deferment during the 6 months after the student is no longer enrolled in an eligible school at least half time

MILITARY SERVICE DEFERMENT:
Eligible loans for this deferment: FFEL, Direct, Perkins, and PLUS Loans
Length of Deferment: Length of Qualifying Service plus 180 days after it’s completion
To qualify you must be:

Serving on Active Duty during a war or other military operation or national emergency (even if recalled from retirement or called to active duty from the reserves).

POST-ACTIVE DUTY STUDENT DEFERMENT:
Eligible loans for this deferment: FFEL, Direct, Perkins, and PLUS Loans
Length of Deferment: The earlier of 13 months after the date active duty service and any grace period were completed, or the date half-time enrollment is resumed.
To qualify you must be:

A retired or reserve member of the military that was called to active duty.
If you receive this deferment in conjunction with a Military Service Deferment then the 180 day period and your Post-Active Duty Deferment will run simultaneously.

PUBLIC SERVICE DEFERMENT: Go HERE for FFEL Loans / Go HERE for Direct Loans
Eligible loans for this deferment: FFEL, Direct Loans
Length of Deferment: Deferment will begin on the date you began performing public service and will end on the earlier of (1) the end date certified by a qualifying official, or (2) the date that perming public service is stopped.
To qualify you must meet one of the following requirements:

On Armed Forces of the United States Active Duty
Serving as an officer full time in the Commissioned Corps of the Public Health Service
Serving in the Peace Corps
A paid full-time volunteer in Action Programs
In the National Oceanic and Atmospheric Administration on active duty

TEMPORARY TOTAL DISABILITY DEFERMENT REQUEST: Go HERE for FFEL Loans / Go HERE for Direct Loans
Eligible loans for this deferment: FFEL, Direct Loans
Length of the Deferment: The earlier of the end of the qualifying condition or no longer then 6 months after a physician has certified the condition
To qualify you must meet one of the following requirements:

Disabled
Caring for a disabled dependent or spouse

PARENTAL LEAVE/WORKING MOTHER DEFERMENT REQUEST: Go HERE for FFEL Loans / Go HERE for Direct Loans
Eligible loans for this deferment: FFEL, Direct Loans
Length of Deferment: Begins the date of the qualifying condition and ends the earlier of the date I reach my maximum deferment period or the condition that made me eligible ends
To qualify you must meet one of the following requirements:

-On Parental Leave: the start date has to be within 6 months of your last date of at least half-time enrollment
-A Working Mother

For more information you should contact your student loan servicer to ensure you qualify for the deferment and get instructions on how to submit your paperwork. In the next segment we will cover what to do if you can’t make payments and don’t qualify for any type of deferment.

Check out the other Student Loan articles in this series!

Repaying Student Loans: Intro (Where to Start)

Repaying Student Loans: Section 1 (When do I have to pay and how much?)

Repaying Student Loans: Section 2 (Your Repayment Options)

Repaying Student Loans: Section 3 (What if I can’t make my payment?)

Repaying Student Loans: Section 4 (What if I don’t qualify for deferment?)

Repaying Student Loans: Section 5 (Can my loan be discharged?)

Repaying Student Loans: Section 6 (Loan Forgiveness Programs)

Repaying Student Loans: Section 7 (Loan Consolidations)

Repaying Student Loans: Section 8 (Questions and Answers)