How To Defer Student Loans Nelnet

To Defer Student Loans, Log in to your Nelnet.com account and choose Repayment Options & Resources to apply for deferment or forbearance. You can also call us at 888.486.4722.

Sometimes it may seem impossible to make your student loan payment. Maybe you decided to go back to grad school, your entry-level salary isn’t what you expected, or a health condition prevents you from working—but you have deferment and forbearance options to postpone your payments and bring your account current without hurting your credit. Each option has its own eligibility rules and time limits. Read on to see which fits your unique situation—we almost always have a solution for you.

School Deferment

If you go back to school, you can apply for deferment.

To qualify for this deferment, you must be enrolled at least half-time at an eligible school. For a parent borrower who has an outstanding loan disbursed on or after July 1, 1987, but prior to July 1, 1993, who had a loan disbursed before July 1, 1993, outstanding when he or she obtained a loan after July 1, 1993, or who obtained a PLUS loan on or after July 1, 2008, the PLUS loan may be deferred if the student is enrolled at least half time at an eligible school. There is no cumulative maximum time limit for this deferment.

Student Loan Debt Burden

If your payments total more than 20% of your gross monthly income, you may qualify for forbearance.

To qualify for this forbearance, your student loan payments must be equal to or greater than 20% of your total monthly income. You will need to provide proof of income as well as documentation of your monthly payments due on any Title IV loans not serviced by Nelnet. Title IV loans include loans made under the Federal Family Education Loan Program (FFELP), Federal Direct Loan Program (FDLP), and Federal Perkins Loan Program. Forbearance is granted in periods of up to 12 months at a time with a cumulative maximum time limit of 36 months.

Teacher Loan Forgiveness Program

Teachers at eligible schools may request forbearance if they are performing teaching service to qualify for loan forgiveness.

To qualify for this forbearance, you must be performing qualifying teaching service at an eligible elementary or secondary school or educational service agency. Additionally, at the time you request the forbearance, the forgiveness amount must satisfy the anticipated outstanding balance of your loan at the time forgiveness is expected to be granted. You must provide a statement certifying your intent to complete the qualifying service and the beginning and end dates of the current academic year of teaching service. Forbearance is granted in periods up to 12 months at a time.

Take a Break from Payments

Both deferments and forbearances give you a break from monthly payments for a set period of time. Many options are available to meet a variety of needs. If you are having difficulty making payments and want to see which options fit your specific situation, you can read Federal Student Aid’s page about postponing payments. When you’re ready to postpone your payments:

• Log in to your Nelnet.com account and choose Repayment Options & Resources to apply for deferment or forbearance. You can also call us at 888.486.4722.
• Calculate accrued interest while in deferment or forbearance.

Avoid Default With Deferment or Forbearance

About Deferment

If you are experiencing financial hardship, go back to school, are unemployed, or are on active duty military service, postponing payments with deferment may be right for you. Subsidized Stafford loans and subsidized consolidation loans will not accrue additional interest, so your balance after the deferment period will be the same as when it started. However, for unsubsidized Stafford loans, PLUS loans, SLS loans, or unsubsidized consolidation loans, interest will accrue during the deferment period, so it’s wise to pay at least the interest on your loan each month. This will prevent your interest from being capitalized, or added to the principal of your loan, essentially increasing your total balance and requiring you to pay more in the long run.

About Forbearance

If you work an internship, perform certain types of community service, or find yourself experiencing financial hardship, you may be qualified to postpone payments with forbearance. Forbearance resolves any delinquency on the account — log in to your Nelnet.com account and select Repayment Options & Resources to see if you’re eligible. You can also call us at 888.486.4722.

For Nelnet account numbers beginning with “E”: Interest will continue to accrue during a forbearance. Payments made when your account returns to a repayment status (when payments are due) will be applied to any unpaid interest that accrued before or during this forbearance and then to the outstanding principal balance.

For Nelnet account numbers beginning with “D” or “J”: Interest will continue to accrue during a forbearance, and any unpaid, accrued interest from before or during the forbearance will be added to the outstanding principal balance (known as capitalization) if it’s not paid before the end of the forbearance.