A deferment is one way in which payments on your current student loan account
may be postponed. Deferments are available as entitlements to borrowers who meet
certain specified conditions. This means that if you provide your lender, in a
timely fashion, with a request for deferment that fully documents your
eligibility for that deferment, your lender must grant the deferment.
The compressed format and registration process of CMU Global Campus courses
further complicates this procedure. Students typically register for one course
every session, which may not qualify them for the minimum number of credit hours
required for an in-school deferment. Students should be aware of this potential
delay and should continue to make their monthly payments until they receive
confirmation about the deferment.
Interest on Deferred Loans
If you have loans that are subsidized (i.e., you were not responsible for the
interest accruing on them while you were in school), the interest accruing on
them during a deferment will be paid by the federal government. If you have
loans that are not subsidized, you will be responsible for the interest that
accrues on them during periods of deferment. You may arrange to pay this
interest to your lender as it accrues; or, you may elect to have the accrued
interest capitalized. In that case, the accrued interest and the principal
balance are added together. Then interest accrues on that new total.
Six-Month Grace Period
When you separate from school by graduating, or stop taking classes for some
other reason, your student loans become due for payment. You can request a
one-time six-month grace period to delay the start of repayment on your loan.
Remember, the six-month grace period is offered only once. So, if you have
already used the full grace period during an earlier separation from school, you
are not eligible for another six-month grace period.
If, however, you return to school and receive a new loan, you would be eligible
for a grace period on the new loan. When you separate from school again, your
earlier loans would go into immediate repayment unless you ask your lender for a
forbearance to realign your repayment.
National Student Loan Clearinghouse
Central Michigan University participates in the industry-sponsored consortium,
the National Student Loan Clearinghouse. The university reports monthly the
enrollment status of all students to the Clearinghouse. The Clearinghouse is
responsible for providing status and deferment information to guaranty agencies,
lenders, servicers, and the Department of Education’s National Student Loan Data
System. The Clearinghouse process identifies those borrowers who:
- withdraw from school and need to begin repayment;
- transfer from one school to another;
- return to school and may be eligible for a deferment; and
- continue in school and are eligible for deferment extension.
For information on how to access the clearinghouse, visit:
In-School Deferment Forms
In school deferment forms for most lenders are available on the Internet.
Following are links to some of these sites.