Sometimes a borrower faces the difficult circumstances which make payments on a loan. If you’re in a situation, you could qualify for a deferment or forbearance which enables you to adjust or postpone payments on your loan.

Adjournment

During a period of deferment, your lender postpones regular payments of your loan. If you have a subsidized Stafford loan or Perkins loan, the government pays interest on the loan during the deferment period. If you have an unsubsidized Stafford loan, you have to pay the interest that accrues during the deferment (or allowing it to accumulate and they’ll add it to the capital when it ends the postponement). The postponements are granted for specific situations and have certain time constraints and conditions to qualify.

In general, deferrals are granted for:

  • Enrollment at the college at least half time;
  • Studies in a postgraduate research program
  • Participation in a rehabilitation training program for people with disabilities;
  • Unemployment; or
  • Economic difficulties.

Other types of postponement may also be available to certain borrowers. Check with your lender or the company that manages your loan for more information. For more information you can contact the BT Customer Service at (800) 845-6267. Remember, you have to apply for deferrals. Not granted automatically. (Note: You can download forms to request a postponement).

Requests for deferral

To request a deferment you must speak directly with your lender or write. To request a deferment, download the appropriate form here, fill, sign and send to your lender or the company that manages your loan. (Do not send the forms to TG. That will only delay the process.) Remember that each request for deferment must be approved before it can postpone your payments. Check with your lender or the company that manages your loan for more information. You can also contact Customer Service for BT email.

Indulgence

Forbearance is a period of time in which your lender may reduce or suspend regular payments of your loan or extend your payment period due to financial difficulty that you have (but do not qualify for a postponement). Contrary to the postponements, the federal government pays interest that accrues on subsidized loans during forbearance.

An indulgence usually granted at the discretion of the lender. However, most lenders are willing to help in difficult times to avoid defaults. However, it is your responsibility to contact the lender as soon you know you are having financial difficulties.