New Military Deferment
Notice to Perkins borrowers: Effective July 1, 2006, a new military deferment has been created.
Loans with a first disbursement date on or after July 1, 2001, may be eligible for a deferment for a period not to exceed three (3) years during which a borrower is serving on active duty during a war or other military operation or national emergency, or performing qualifying National Guard Duty during a war or other military operation or national emergency.
Called Into Active Duty
If you have been called into active duty or reassigned duty stations for at least 30 days as a result of a military mobilization, you are entitled to a loan deferment or forbearance.
Your lender(s) must grant you a deferment or forbearance for the following:
- The request must be made by the borrower, the borrower's family, or another reliable source.
- The initial request need not be in writing.
- The lender must document the reason for forbearance on the borrower's account.
- The lender will need to examine the eligibility for a military deferment before processing the forbearance.
- After one year, documentation (such as military ID and a copy of the borrower's orders) and a written request will be required to extend this relief.
- Cease all collection activities for the period of active duty.
- Resume collection activities no later than 30 days after the end of the borrower's military service.
- Cease all pending and future default judgment activities.
In-School Status: If your Federal Family Education (FFEL), Direct Lending (DL), or Perkins loan is in an in-school deferment status, the lender must maintain that status during the period of active service plus the time needed for the borrower to re-enroll in school when released from duty. The total time allowed for this relief is three years, including the time necessary for the borrower to resume enrollment.
Loans in Grace Status: If your loan is in a grace period status when you are ordered to active duty, the lender must keep the loan in this status until the borrower is released from duty. Once the borrower is released from duty, the borrower will receive the remainder of their allotted grace period. The total time allowed for this relief is three years.
Loans in Repayment: If a loan is in a repayment status when you are ordered to active duty, the lender must grant a forbearance beginning on the first day of active duty, not to exceed one year. Forbearance beyond one year will require supporting documentation and a written agreement. Things to remember:
Loans in Default Status: If the guarantor is notified that the defaulted borrower has been called to active duty, they must:
Download a Request for Deferment form (PDF).