Deferment Spotlight: In-School Deferment

What it is:  A deferment to place your loans on hold if you are attending school as at least a half-time student

Eligibility Requirements: The only requirement for this deferment is that you are currently enrolled at a Department of Education school at least half time.  Your school determines your enrollment status.

How long is this Deferment for:  This is an unlimited deferment that lasts as long as you meet the above criteria

Why it may not be the best idea:  You can make payments while on a Deferment so generally this is not a bad plan with one exception.  If you are making payments towards Public Service Loan Forgiveness, you cannot make a qualifying payment while in deferment status so to avoid any interruptions, leaving your account in this status would be detrimental.

More times than not you will have to do nothing to qualify for this deferment.  If your school updates through the National Student Clearinghouse (NSC) or the National Student Loan Database System (NSLDS) your servicer uses these updates to place you in deferments when necessary.  If these are not updated and you qualify, you will need to get an In-School Deferment form filled out by your school (or enrollment verification information) and return it to your servicer to update.

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