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Unemployment Deferment

How to Use the Unemployment Deferment


Unemployment deferment allows you to temporarily suspend payments on your student loans while you are unemployed. “Unemployment” is triggered by working less than 30 hours per week. To begin an unemployment deferment, you must submit a request through your lender.

Qualifying for Unemployment Deferment

To qualify and maintain an unemployment deferment, you must document your case. You’ll need to actively seek work, and it’s best to keep records of your efforts at finding employment. In addition, you can document your unemployment by showing that you receive unemployment benefits from your state. An unemployment check is the most effective proof of your status.

Your lender may request any additional documentation that they feel is necessary, so be prepared to back up any claims you’re making.

Length of Deferment

Your deferment will go in 6 month cycles. You must request that deferment continues after each 6 months – this isn’t automatic. If your first loans were made before July 1, 1993, your deferment may last a maximum of 2 years – otherwise you can get a 3 year unemployment deferment.

Once you’re working again, your deferment should end. Contact your lender and let them know that you’re no longer eligible for the deferment.

Applying for Deferment

To apply for an unemployment deferment, ask your lender for a form. You'll need to complete and return it with proof of your unemployment.

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