Loan Deferment Terms

 Under certain circumstances, students have a right to defer (postpone) repayment of Federal Stafford and/or Direct Loans. Students whose loans were obtained after July 1, 1993, may defer payments for the following conditions:

• Enrolled at least half-time at an eligible institution.
• Engaged in a full-time course of study in a graduate fellowship program.
• Engaged in a full-time rehabilitation training program for individuals with disabilities (if the program is approved by the Department of Education)
• Conscientiously seeking, but unable to find, full-time employment (for up to three years)
• Experiencing an economic hardship as determined by federal law (for up to three years)

Each “Federal Direct Loan Master Promissory Note Instructions and Notices” carries all details for student loans including grace period, interest rates, deferment, forbearance, and consequences of default. Students are required to sign that they have read and understand the guidelines for student loans prior to loan certification.