May 7, 2021

How to Defer Student Loans


College is expensive, and recent graduates are dealing with an average of $30,000 in student loan debt. Meanwhile, the average starting salary for fresh graduates is only $47,000. The disparity between these two figures can be scary, and most people have to tighten their budgets to make their monthly student loan payments.

However, defaulting on your student loan is never a good idea. First, student loans are not discharged even if you file for bankruptcy. Second, defaulting can lead to serious consequences such as tanking your credit score and losing your eligibility to tax refunds and federal benefits.

If you’re struggling to pay off your student debt, consider getting a student loan deferment or lower your monthly payment with Chipper instead.

What Is a Student Loan Deferment?

Deferment refers to the process of suspending loan payments. When your application for a deferment is approved, you don’t have to make monthly loan payments during the specified period.

For those with a federal loan or a subsidized consolidation, deferment happens without accruing interest. For those with unsubsidized private loans, the interest continues to accrue during the period of deferment.

Who Is Eligible for Student Loan Deferment?

Some people are qualified for deferment programs to encourage them to earn their degree and work in certain professions, such as teachers, nurses, and public service employees.

The following people may also be eligible to defer student loans:

  • People attending school in an eligible institution at least half-time
  • People participating in a graduate fellowship program, a residency program, or a career-related internship
  • People attending school after active military duty or while on active duty
  • People who are unemployed or suffering economic hardship
  • People participating in a rehabilitation program for those with disabilities
  • People with a parent with a Parent PLUS loan

Take note that most student loan deferments are only available to those with a federal student loan. If you have a private student loan, you have limited options. It’s best to get in touch with your lender to see if they offer deferment, whether you qualify, and how you can apply.

How Do You Defer a Student Loan?

If you’re wondering how to defer student loans, here’s what you need to know:

  1. Make sure that you meet the eligibility criteria listed above.
  2. Send your loan provider or servicer your application.
  3. Include the necessary documentation. For instance, if you’re applying for deferment based on unemployment, include proof of unemployment benefits.
  4. Don’t stop making payments immediately after you send out the application. Wait for your loan provider to approve it.

The length of the deferment will depend on the type of deferment you’re eligible for. For example, if you’re applying for deferment due to financial hardship, the maximum period is three years. When determining the length of the deferment period, make sure that you take your own circumstances into account.


If you have a federal or subsidized loan, a student loan deferment can be a great option to get your finances in order. However, student loan deferment can be more detrimental to your finances if you have a private or unsubsidized loan that capitalizes interest during the deferment period. This is why utilizing services like Chipper can prevent you from falling into hurtful financial situations. We can help the average student loan borrower save up to $308 per month on their repayment plan! Get started linking your loans and seeing your potential options today.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

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