Lori Meadows
If you're struggling to make payments on your Sallie Mae student loan, you may be able to apply for a deferment, which allows you to temporarily reduce or postpone payments in certain circumstances. Deferment is available for those returning to college, going to graduate school, or entering an internship, law clerkship, fellowship, or residency. You can apply for deferment in increments of up to 12 months, with a maximum of 48-60 months, depending on the type of loan. During the deferment period, interest will continue to accrue, increasing the total loan cost. However, making extra interest payments during this time can help lower the total loan cost. It's important to keep track of any documents related to your deferment and be aware of when your payment start date will be to avoid delinquency or default on your loan.
| Characteristics | Values |
|---|---|
| Deferment period | Up to 48 months for undergraduate and graduate student loans; up to 60 months for undergraduate student loans; up to 48 months for Medical School, Dental School, Health Professions Graduate, Law School, and Graduate School Loans |
| Interest | Interest will continue to accrue during the deferment period, increasing the total loan cost |
| Eligibility | Returning to college, entering graduate school, or starting an internship, law clerkship, fellowship, or residency |
| Request process | Submit an In-School Deferment Request Form or Internship, Law Clerkship, Fellowship, or Residency Deferment Form; request must be approved |
| Alternative options | Forbearance, refinancing, or other repayment options |
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What You'll Learn
Deferment options for undergraduate and graduate students
Deferment is a great option for students who need to reduce their monthly payments or postpone them altogether. This option is available for both undergraduate and graduate students.
Undergraduate Students
If you have a Sallie Mae undergraduate student loan, you can request a deferment of up to 48 months, as long as you're enrolled at least half-time. This means that you won't have to make principal and interest payments while you're in school. You can apply for this deferment in increments of up to 12 months, up to a maximum of 60 months.
Graduate Students
For graduate students, the same rules apply. You can request a deferment of up to 48 months, as long as you're enrolled at least half-time. This includes graduate programs such as the MBA Loan, Graduate Loan for Health Professions, Law School Loan, Medical School Loan, and Dental School Loan. Federal student loans are automatically deferred for up to 36 months if you're enrolled in graduate school at least half-time.
Other Options
If you don't qualify for deferment, there are other options available. For temporary financial hardship, forbearance is an option, although the terms and fees may be less favourable than with federal student loans. You can also consider loan refinancing or an income-driven repayment plan for longer-term relief.
Military Service
Deferment or forbearance during military service may be possible, and in the case of disability or death, the remaining loan balance may be waived.
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Interest repayment options
When you apply for a Sallie Mae undergraduate or graduate student loan, you can choose from three in-school repayment options: deferred repayment, fixed repayment, or interest repayment.
The interest repayment option allows you to pay only the interest every month you are in school and during your separation or grace period. This option can help you reduce the total cost of your loan. While you are in school or during your grace period, the interest repayment option typically has a lower interest rate compared to the fixed and deferred repayment options.
However, it is important to note that interest will continue to accrue during this time, increasing your total loan cost. If you choose the interest repayment option, you will need to continue making these payments throughout your deferment period.
If you are considering deferring your Sallie Mae undergraduate or graduate student loan, you can request a deferment of up to 48 months for undergraduate loans and up to 12 months in increments up to a maximum of 60 months for graduate loans. During the deferment period, interest will continue to accrue, increasing the total cost of your loan.
To request a deferment, you may need to submit a form, and your school will need to verify your enrollment. You can ask to have the deferment period removed at any time if you wish to resume making principal and interest payments.
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Postponing payments during military service
If you are serving in the military, you may be eligible for deferment or forbearance to postpone payments on your student loans. To find out more about eligibility requirements, you can contact Sallie Mae at 855-534-2668.
Servicemembers and their families can also fill out the SCRA benefit form online. If you have another type of Sallie Mae loan, refer to your Promissory Note or contact Sallie Mae to see if these deferments are available.
If you are looking to make payments on your student loans while serving in the military, the Salllie Mae app allows you to make or schedule one-time payments online or through an automated phone system. You can also make payments by mailing a check or money order, or by designating a spouse, parent, or trusted friend as a power of attorney to make payments on your behalf.
If you are facing financial hardship, you can call Sallie Mae's dedicated military specialists at 855-534-2668.
If you are returning to college, going to graduate school, or entering an internship, law clerkship, fellowship, or residency, you may be eligible for a different type of deferment. You can apply for this type of deferment in increments of up to 12 months, up to a maximum of 60 months for undergraduate student loans and up to 48 months for graduate school loans.
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Lowering total loan cost
Yes, you can pay your student loan while it is in deferment. Deferment lets you temporarily reduce or postpone payments on your loan(s) if you’re returning to college, going to graduate school, or entering an internship, law clerkship, fellowship, or residency.
When you defer a loan, interest will continue to accrue (grow) while you’re in school or during your internship, law clerkship, fellowship, or residency program, which will increase your total loan cost. To lower your total loan cost, you can make extra interest payments while you’re in deferment.
If you are unable to make extra interest payments, there are other ways to lower your total loan cost. You can choose from several repayment options over the life of your loan. Here are some of the options:
- Deferred repayment: Make no scheduled loan payments while you’re in school and during your separation or grace period.
- Fixed repayment: Pay a fixed amount every month you're in school and during your separation or grace period.
- Interest repayment: Only pay the interest every month you’re in school and during your separation or grace period.
It is important to note that the repayment option you choose will affect the interest rate of your loan. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option, and unpaid interest is added to the loan’s current principal at the end of the grace/separation period. Payments may be required during the grace/separation period, depending on the repayment option selected. Variable rates may also increase over the life of the loan.
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Delinquency and late fees
Delinquency occurs when you fail to pay all or part of your monthly student loan payment. You may be charged late fees for delinquency, which can add to your Total Loan Cost. Late payments may be reported to consumer reporting agencies and can negatively impact your credit report. Default is the most serious—it means you've failed to repay your student loans and can have serious consequences. Once your student loan is in default, the entire current balance becomes due, not just the missed monthly payments. Your default may be reported to consumer reporting agencies, where it can stay on your credit report for up to seven years.
Before your student loan becomes delinquent and goes into default, you can contact Sallie Mae to work together for a solution. There are several options available for delinquent customers, including:
- Loan Modification: This option lowers your monthly payments by reducing your interest rate and possibly extending your loan term.
- Payment Extension: This option allows you to bring your loan current by making payments that are equal to or greater than the current amount due for three consecutive months.
- Reduced Payment Plan: This option allows you to make six months of interest-only payments.
- Deferment: You can also choose to defer your student loans when you go back to school at least half-time or are selected for a program. With a deferment, you can reduce or postpone payments, but interest will continue to accrue, increasing your Total Loan Cost.
It's important to note that deferment is not the same as forbearance, which may be available during military service or in cases of disability or death. Forbearance allows you to postpone payments on your student loans, but the specific eligibility requirements vary.
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Frequently asked questions
Deferment lets you temporarily reduce or postpone payments on your loan(s) if you’re returning to college, going to graduate school, or entering an internship, law clerkship, fellowship, or residency.
You can apply for this type of deferment in increments of up to 12 months, up to a maximum of 60 months for undergraduate student loans and up to a maximum of 48 months for the Sallie Mae Medical School Loan, Sallie Mae Dental School Loan, Sallie Mae Health Professions Graduate Loan, Sallie Mae Law School Loan, and the Sallie Mae Graduate School Loan.
Yes, any extra interest payments you can make while you’re in deferment can help lower the Total Loan Cost.
Interest will continue to accrue (grow) while you’re in school or in an internship, law clerkship, fellowship, or residency program, which will increase your Total Loan Cost.
