Deferment/Forbearance Spotlight: Less Common Forbearances and Deferments

There are many deferments and forbearances.  We have covered all the primary ones that the borrower would be most likely to qualify for.  But in all fairness there are others that are much less common.  These are ones that are still eligible for recent loans but are not common.  If your loans were disbursed before 1993 it is a wild west of options but since that was over 20 years ago we will leave this topic be for the time being.

The easiest way to do this is by simply listing them and what they do.

Rehabilitation Deferment-borrower must be enrolled in training program for drug/alcohol abuse, vocational rehab, or mental health services. Program official must certify dates for this unlimited deferment.

Natural Disaster Forbearance-if borrower is living/working in affected area of natural disaster such as flood, tornado, etc. This can only be done in 3 month increments, but is unlimited overall.

Internship Residency Forbearance-borrower must be enrolled in internship or residency program; to qualify borrower must supply signature of program director certifying dates. If this program is not medical or educational, borrower must also provide statement from state licensing board showing that program is needed to become certified.

Post Enrollment Deferment-PLUS loans do not receive a 6 month grace period. However a borrower can request this deferment is placed on the account to give 6 months after borrower is no longer eligible for In-School Deferment. This acts like a pseudo grace period.

Bridge Deferment-If you are full time the semester before and after summer but your school only reports a semester at a time, you can use this to bridge the two deferments so payments don’t have to be made during those couple of months.

Graduate Fellowship Deferment-if borrower is in graduate program after obtaining undergrad degree and is paid by the school and in lieu of tuition. Unlimited deferment that must have dates certified by authorized official.

As always if you think you qualify for one of these contact your servicer and they can discuss the details with you.  Though they are not as common as the most popular deferments and forbearances they do still come up from time to time.  While I have never placed a Rehabilitation Deferment, I have done several Internship Residencies and Natural Disaster Forbearances.  Also the other day I placed my first Bridge Deferment.  So if you think you qualify, just ask!