In-School Loan Deferment

Learn about eligibility for in-school student loan deferment

Under most federally guaranteed student loan programs, students enjoy a post-graduation grace period. That is, they're not required to begin paying back their loans until a certain period. Typically, a student has six months after graduation in the case of Stafford Loans, and nine months after graduation for the Perkins Loan to start making loan payments. Some private student loans, like our Citizens Bank Student Loan™, also offer the benefit of a grace period if you choose to fully defer payments until after graduation.

But they can also qualify for an in-school loan deferment, or a temporary postponement in their obligation to repay the loan, in certain cases in which they pursue additional post-secondary education. That can include:

  • At least half-time (generally meaning six hours of weekly coursework) enrollment in an approved post-secondary program.
  • Study in a graduate fellowship program or approved rehabilitation training program for the disabled.

Things to keep in mind about in-school loan deferment

Remember, you must continue to make payments on your student loans until you have received formal notification that you have been granted a deferment. Failure to do so can result in loan delinquency, or even student loan default.

Also remember that in-school student loan deferments are only temporary, and are granted only for certain defined periods of time. When that period has elapsed, repayment of your loans will remain your responsibility. And unless you have a subsidized federal student loan, you will be responsible for the interest that accrues on your loans even during the deferment period. If you do not pay that interest, it will simply be capitalized - that is, it will be included in the loan's principal.

Learn more about student loan deferment from Citizens Bank

For more information on deferments, or to apply for a student loan in-school deferment, contact your lender or loan servicer.

Additional student loan and college planning resources

Avoiding Student Loan Forbearance
Postpone Student Loan Payments: Reasons for Deferment
Federal Student Loan Deferment: Economic Hardship
Federal Student Loan Deferment: Military
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