Difference between Internship/Residency Forbearance and Deferment

Many people know about the Internship/Residency Forbearance, but few know about the Deferment that exists by the same name.  That is because this deferment is not one that many qualify for anymore because it requires the loans to be much older than most people’s loans are anymore.

In order to qualify for this deferment your loans must meet the following criteria:

Stafford and SLS Loans–Loans disbursed prior to 7/1/1993

PLUS Loans–Loans disbursed prior to 8/15/1983

Consolidation Loans-Never qualify

This deferment is good for a maximum of two years.

The Internship/Residency Forbearance is available for borrowers who have used the entire 24-month deferment or whose loans do not meet these disbursement date requirement.  The forbearance  can be granted in 12-month increments until the program is completed.

Here is the eligibility in terms of criteria for both the deferment and forbearance:

-Must have all FFELP and Direct Loans

-Must have been accepted into a medical or dental internship/residency program that is a supervised training program; in addition, it must require you to hold a Bachelor’s degree before acceptance into the program

-Medical or dental internship/residency program must either:

-Be required before you may be certified for professional practice or service


-Lead to a degree or certification from an institution of higher education, a hospital, or a health care facility          that offers post graduate training