An In-School Deferment can be really beneficial to a borrower. If you don’t have money to pay for loans because you are in school, this is a no-brainer. Even if you do have the money to do so, if you have subsidized loans the government will pay the interest so it can save you money while you continue to pay.
But there are times where you may not want this deferment. The main reason is you are on Public Service Loan Forgiveness and want your payments to qualify. If this is the case (or you just don’t like being in deferment), there is a two step process you can do.
First off verbally request to end your In-School Deferment. After the necessary processing time, this can be completed. What you can additionally request though is what is called an In-School Deferment waiver. This is a paper you can fill out that not only will your current In-School Deferment be cancelled but all future In-School Deferments you would qualify for would as well. And if you situation changes you can always recontact your servicer and have the waiver cancelled.
Just before you do it, make sure it makes sense for your situation. I had a person that I was unable to convince to not cancel their deferment who had all subsidized loans except one and was not in PSLF. They just “didn’t like the idea of having their loans in deferment.” Even after I explained payments could still be made it did not matter. This was costing them almost $100.00 a month in extra interest. But if it does benefit you, the tools are there to help you out!