Deferment & Forbearance

The Basics

A Deferment allows you to postpone repayment and stops interest from accruing on most loans while you're in a specific qualifying situation. (The Direct Unsubsidized Loan does continue to accrue interest.)  Not all loan programs offer the same types of deferment. Our Deferment/Forbearance chartdetails the options available for each loan program. It's important to review all of the loans you've borrowed and determine how to handle each one individually.

A Forbearance allows you to temporarily reduce your monthly payments to interest-only payments. Interest continues to accrue on all loan types and must be paid each month. Your regular monthly payment amount will be recalculated after the forbearance ends, to allow you to finish paying your loan within your original repayment term (typically 10 years).

Deferment is a better option for borrowers than forbearance.

Application Process

  • Decide whether you need/want to postpone or reduce payments on all of your loans. Can you afford to repay some of your loans & postpone others?
  • See the chart below for application forms & details. Complete the application process with EACH of your servicers. Some forms have sections that must be completed by your employer, school official, or residency program director. Other forms may be returned directly to your servicer(s). 
  • Our Deferment/Forbearance chart lists the MAXIMUM length of each option. The deferment/forbearance can only be granted in 3-12 month increments. You MUST REAPPLY to extend the length of any approved deferment/forbearance.

  • You'll be notified once the servicer has determined your eligibility. You may need to provide additional documentation if requested and you'll need to keep making payments until your application is approved.
  • Keep track of your deferment/forbearance end-date and be prepared to reapply or for repayment to resume. 

Types of Deferment

Remember, our Loan Office is your servicer for Perkins or Instituitional loans. Your federal servicer can give you details about Stafford/PLUS Loan deferment, or look online at StudentAid.gov.

Type of Deferment

Brown University Institutional Loan Programs

Federal Perkins Loans

Federal Direct Loans

In-School Deferment

All Brown University Institutional Loan programs: A borrower enrolled at least half-time at an eligible institution may defer repayment. Your school will need to complete a portion of this form.

(Note: LDS or PCL require full-time enrollment for student deferment.)

Deferment Application - Brown Institutional Loans ONLY

Federal Perkins Loan: A borrower enrolled at least half-time at an eligible institution may defer repayment. Your school will need to complete a portion of this form.

Federal In-School Deferment Form OMB 1845-0011

 

Federal Direct Loans: A borrower enrolled at least half-time at an eligible institution may defer repayment. Your school will need to complete a portion of this form.

Obtain the Federal form from your federal loan servicer.

Internship / Residency Deferment

  • Casperson, Kaplan, Medical, Plitt/Anderson, or Tarandi Loans: Up to three years on loans disbursed during or after the 2005/2006 academic year.

  • Ellwood Loans: Up to three years on loans disbursed during or after the 2011/2012 academic year.

  • LDS or PCL Loans: Up to three years for borrowers pursuing advanced professional training in primary care, including internships and residencies.

Your residency program MUST complete a portion of this form. 

  Residency Deferment Application

Federal Perkins Loans do not offer this deferment - you may apply for forbearance instead

 

Federal Direct Loans do not offer this deferment - you may apply for forbearance instead

Obtain the Federal form from your federal loan servicer.

Graduate Fellowship Deferment

LDS or PCL Loans ONLY: A borrower is eligible for deferment for up to two years if participating in a fellowship training program or a full-time educational activity which is directly related to the health profession for which the borrower prepared at the Institution.

Deferment Application - Brown Institutional Loans ONLY

Federal Perkins Loans: A borrower may be eligible for deferment if enrolled and attending as a regular student in a graduate fellowship program approved by the Secretary or if engaged in graduate or postgraduate fellowship-supported study outside the United States.

Federal Graduate Fellowship Deferment Form OMB 1845-0011

Federal Direct Loans: A borrower may be eligible for deferment if enrolled and attending as a regular student in a graduate fellowship program approved by the Secretary or if engaged in graduate or postgraduate fellowship-supported study outside the United States.

Obtain the Federal form from your federal loan servicer.

Economic Hardship Deferment

Brown University Institutional Loan programs do not offer this deferment - you may apply for forbearance instead

Federal Perkins Loans: A borrower may be eligible to defer repayment if they meet any of the following criteria:

Working 30 hours or more per week and meeting federal guidelines for financial difficulty.

Receiving federal or state general public assistance.

Facing a temporary disability

Federal Economic Hardship Deferment Form OMB 1845-0011

Federal Direct Loans: A borrower may be eligible to defer repayment if they meet any of the following criteria:

Working 30 hours or more per week and meeting federal guidelines for financial difficulty.

Receiving federal or state general public assistance.

Facing a temporary disability

Obtain the Federal form from your federal loan servicer.

 

Unemployment Deferment

Urban Education Loans ONLY:

Contact the Loan Office to apply.

Federal Perkins Loan: A borrower may be eligible to defer repayment while out of work or working less than 30 hours per week AND actively seeking full time employment.

Federal Unemployment Deferment Form OMB 1845-0011

Federal Direct Loan: A borrower may be eligible to defer repayment while out of work or working less than 30 hours per week AND actively seeking full time employment.

Obtain the Federal form from your federal loan servicer.

Volunteer under the Peace Corp Act Deferment

Casperson, Ellwood, Kaplan, LDS, Medical, PCL, Brown University Loans ONLY: A borrower may be eligible for deferment for up to three years while serving as a volunteer under the Peace Corps Act.

Deferment Application - Brown Institutional Loans ONLY

Perkins Loans: A borrower may be eligible for deferment and subsequent cancellation while serving as a volunteer under the Peace Corps Act.

Perkins Cancellation and Pre-Cancellation Form



Volunteer in Americorp/Vista Deferment

Casperson, Ellwood, Kaplan, Medical, Brown University Loans ONLY: A borrower may be eligible for deferment for up to three years while serving as a volunteer under AmeriCorp Vista; under the Section 603 of the Economic Opportunity Act of 1964.

Deferment Application - Brown Institutional Loans ONLY

Perkins Loans: A borrower may be eligible for deferment and subsequent cancellation while serving as a volunteer in AmeriCorp Vista.

Perkins Cancellation and Pre-Cancellation Form

Active Duty Military Service Deferment/Full Time Member of the Armed Forces Deferment

Casperson, Ellwood, Kaplan, LDS, Medical, PCL, Brown University Loans: A borrower may be eligible for deferment for up to three years while serving as a member of the Armed Forces of the United States. (LDS or PCL define Armed Forces as the Army, Navy, Marine Corps, Air Force, Coast Guard, NOAA, or U.S. Public Health Service.)

Deferment Application - Brown Institutional Loans ONLY

Federal Perkins Loans: A borrower may be eligible for deferment only under certain specific guidelines related to Active Duty service.

Federal Military Deferment Form OMB 1845-0080

Federal Direct Loans: A borrower may be eligible for deferment only under certain specific guidelines related to Active Duty service.

Obtain the Federal form from your federal loan servicer.

Urban Education Loan Deferment

Urban Education Loan ONLY: A borrower may defer repayment while completing qualifying service.

LOAN OFFICE FORM: Urban Education Loan Deferment

N/A

N/A

 

Forbearance

Apply for forbearance when you need to reduce your monthly loan payments but aren't eligible for deferment.

Type of Forbearance

Brown University Institutional Loans

Federal Perkins Loans

Federal Direct Loans

Americorp Forbearance

N/A

Federal Perkins Loans: A borrower completing Americorp service may place their loans in forbearance and Americorp will pay the accruing interest.

AMERICORP:  Americorp Forbearance Process

Federal Direct Loans: Contact your federal loan servicer for information.

Forbearance

Brown University Institutional Loans: A borrower may apply to reduce monthly payment to interest-only.

Forbearance Application

Federal Perkins Loans: A borrower may apply to reduce monthly payment to interest-only.

Federal Forbearance Form OMB 1845-0031

Federal Direct Loans: A borrower may apply to reduce monthly payments to interest-only.

Obtain the Federal form from your federal loan servicer.

 

Loan Codes & Types

D10: Loans for Disadvantaged Students (LDS)    M06: Plitt/Anderson
Mo2: Casperson                                                           M07: Tarandi
M03: Medical                                                               P10: Primary Care (PCL)
M04: Kaplan                                                                PER: Perkins
M05: Ellwood                                                              POL: University

FAQ

What should I consider before applying?

Think about your situation and the types of loan you've borrowed. Can you afford to repay some, but not all? You can choose to defer certain loans and continue paying others.

Deferment is a better option than forbearance because interest does not continue to accrue on most loans during deferment. Deferment periods aren't counted against your total repayment term (typically 10 years). In forbearance, interest does continue to accrue and the period is counted against your total repayment term. This means that your monthly payments are recalculated and increased after your forbearance period ends.  Consider forbearance only in situations where you aren't eligible for deferment.

What is the difference between Unemployment Deferment and Economic Hardship Deferment?

These options are only available to Direct Subsidized, Unsubsidized, PLUS, Federal Perkins, or Brown University Loan (POL) borrowers. If you have other Institutional Loans, you'll need to apply for forbearance.

Apply for an Unemployment Deferment if you are currently unemployed or under employed (working less than 30 hours a week) AND are actively seeking full-time employment.  You may also apply if you are receiving unemployment benefits. 

Apply for an Economic Hardship Deferment if you are working 30 hours or more and are experiencing financial hardship.