Deferment and Forbearance
Deferment
A deferment is a period of time, upon meeting certain qualifications, that you
are entitled to not make payments towards your FFELP loans. The Government
pays the accrued interest on Subsidized loans during periods of deferment.
You are responsible for the accrued interest on Unsubsidized Stafford, SLS,
PLUS and Unsubsidized Consolidation Loans.
There are many deferment types available to you, depending on your situation.
One qualifying factor is the disbursement date of your first outstanding FFELP
loan. If you took out your first loan before July 1, 1993, you may be eligible
for different deferments than if your first loan was disbursed after July 1,
1993.
If you have a TREESM or LEAFSM Loan, you may be eligible
for a TREESM or LEAFSM deferment.
ALPS (Alternative Loans for Parents & Students) loans are not eligible
for deferment.
Forbearance
Forbearance is an agreement between the borrower and the lender/servicer
to cease payments on your Federal Stafford or PLUS loan(s) for a period
of time. Forbearance can be requested when you are experiencing difficulty
in making your monthly payments and do not qualify for a deferment.
No matter what type of loan(s) you have, you are responsible for all interest
that accrues on your loan(s) while in forbearance. You will continue to receive
monthly statements that will show the interest as it accrues on your account.
You can make monthly interest payments, make a larger interest payment towards
the end of your forbearance or allow the interest to capitalize when the
forbearance ends. Capitalization is when the unpaid interest is added to
the principal.
To
request a forbearance, please email
us or call us at 1-800-719-0708 8am to 6pm Monday-Friday
EST.
ALPS and
TREE loans are not eligible for forbearance.
Forms Mailing
Information
Please
print, read and complete the correct deferment form for
your situation. Return the completed form and any required
documentation (ie: paystubs, proof of unemployment registration,
proof of SSI or TANIFF benefits, etc) to GSM&R.
Mail completed
deferment forms to:
GSM&R
PO
Box 2097
Concord ,
NH 03302-2097
OR
Fax to: (603) 227-5401
If
you need assistance completing your deferment form, please
call one of our customer service representatives at 1-800-719-0708
from 8 a.m. to 6 p.m. EST, Monday through Friday, or leave
a voice mail message 24 hours a day and your call will
be returned the next business day. You may also e-mail
us at servicing@gsmr.org |
