Each privilege is explained below and links are provided at the end.

Deferment

A deferment is a period of time during which payments do not have to be made and for certain loans interest does not accrue. The most common deferment is a student deferment. Some loans have deferments for economic hardship, unable to find employment, and rehabilitation training.

Forbearance

Payments may be postponed or reduced during a forbearance, however, interest continues to accrue. A forbearance may be granted for various reasons such as poor health or unanticipated personal problems. Some borrowers qualify if their federal student loan payments equal or exceed 20% of their monthly gross income.

Cancellation & Forgiveness

The only loan that has cancellation privieges in addition to permanent disablity, or death, is the Perkins Loan. If you have a Perkins Loan it is possible to have up to 100% of your loan cancelled for engaging in public service such as, teaching, social work, Peace Corps, military, ACTION and more.

All loans are eligible for loan forgiveness. If you participate in the Americorps program you will earn dollars towards loan repayment, or tuition. Participation can be part-time, or full-time,  for one to  two years.