How To Defer Your Sallie Mae Loans

Sallie Mae offers student loan deferment, allowing borrowers to temporarily reduce or postpone payments on their loans in special circumstances. This includes returning to school or starting an eligible internship, clerkship, fellowship, or residency program. The deferment period can be requested for up to 48 months for Smart Option Student Loans and Sallie Mae graduate student loans, provided the borrower is enrolled at least half-time. During the deferment, interest will continue to accrue, and any unpaid interest will be added to the loan's principal amount, increasing the total loan cost. It is important to note that approval for deferment requests is at the discretion of Sallie Mae and borrowers must continue making payments until notified of approval.

Student loan deferment eligibility

A student loan deferment allows qualified applicants to stop making payments on their loans or reduce their payments for a limited time. Deferment eligibility depends on the type of loan and the borrower's circumstances.

Federal Student Loans

If you have a federally subsidized loan, you may be eligible for a deferment if you are enrolled in school at least half-time, accepted into an approved internship or residency program, or facing economic hardship. During the deferment period, no interest accrues on federally subsidized loans because the government covers these payments.

Private Student Loans

For private student loans, such as those offered by Sallie Mae, deferment eligibility varies by lender, and not all lenders offer it. However, Sallie Mae does allow borrowers to request a deferment of up to 48 months for specific circumstances. For example, if you are enrolled in school full-time or half-time, or accepted into an approved internship, clerkship, fellowship, or residency program. Interest will continue to accrue during the deferment period and will be added to the loan's principal balance at the end.

It's important to note that deferment is not the same as forbearance or an income-driven repayment plan, which may be alternative options for those who do not qualify for deferment or need a longer-term solution.

Deferment period approval

During the deferment period, interest will continue to accrue and will be added to the loan's Current Principal at the end of the deferment, increasing the Total Loan Cost. It is important to note that borrowers must continue making payments until they are notified that their deferment request has been approved. They can also request to have the deferment period removed at any time if they wish to resume making principal and interest payments.

For those with other types of Sallie Mae loans, it is recommended to refer to the Promissory Note or contact Sallie Mae directly to check eligibility for deferment. Servicemembers and their families can fill out the SCRA benefit form online.

Additionally, Sallie Mae offers deferment for those accepted into approved internship, clerkship, fellowship, or residency programs. These programs must meet certain requirements, such as requiring a bachelor's degree and being a supervised training program leading to a degree, certificate, or professional certification. Approval for this type of deferment is at the discretion of Sallie Mae and can be requested in increments of up to 12 months, with a maximum of 60 months for Smart Option Student Loans and 48 months for Sallie Mae Medical.

Interest accrual during deferment

Deferring your Sallie Mae student loan allows you to reduce or postpone your payments. During the deferment period, interest will continue to accrue and grow. This means that interest will be added to your loan's Current Principal, which can increase your Total Loan Cost.

Interest starts to accrue from the day your loan is disbursed. At certain points in time, such as the end of a deferment period, any Unpaid Interest will capitalize. This means it will be added to the Current Principal, and interest will now be calculated on this new, larger amount.

If you are on an interest repayment plan, you will continue to make interest payments throughout the deferment period. However, if you are on a deferred repayment plan, you will not have to make any interest payments during the deferment period.

You can request a deferment of up to 48 months for a Smart Option Student Loan or a Sallie Mae graduate student loan if you are enrolled full-time or half-time. To request a deferment, your school will need to verify that you are enrolled at least half-time. You can also request a deferment if you are accepted into an approved internship, clerkship, fellowship, or residency program.

It is important to note that deferring your loans will increase your Total Loan Cost. To reduce this cost, you can make extra interest payments during the deferment period.

Deferment for internships

To be eligible for a deferment for an internship, the internship must meet certain requirements. Firstly, it must be a supervised training program that leads to a degree or certificate. Alternatively, it can be a program that is required for the student to be certified for professional practice or service. Additionally, the internship must require a bachelor's degree as a prerequisite for acceptance.

If your internship meets these requirements, you can request a deferment of up to 12 months at a time, with a maximum of 60 months for Smart Option Student Loans and 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. It's important to note that during the deferment period, your interest will continue to accrue and will be added to your loan's current principal at the end of the deferment, potentially increasing your total loan cost.

To request a deferment for an internship, you must complete the Internship, Law Clerkship, Fellowship, or Residency Deferment Form. Both you and an official from your internship program must complete the form before submitting it to Sallie Mae for approval. It is important to continue making your loan payments until you receive notification that your deferment request has been approved. Additionally, you can re-request a deferment every 12 months until you reach the maximum allowed.

Deferment for financial hardship

Deferment allows you to temporarily reduce or postpone payments on your student loans in special circumstances. This can be a helpful option if you are facing financial hardship, as it can provide some relief from the immediate pressure of making loan payments. It is important to note that interest will continue to accrue during the deferment period, which can increase your total loan cost.

If you are dealing with financial difficulties, there are a few things to consider. Firstly, it is important to understand the potential impact on your credit report. Delinquency, which occurs when you fail to make full or partial payments on your loan, can be reported to consumer reporting agencies and negatively impact your credit score. In more serious cases, defaulting on your loan can have severe consequences, including the entire current balance becoming due and payable.

If you are facing financial hardship, it is recommended to explore all available options to manage your student loan. This may include requesting a deferment, but it is important to understand the potential implications, such as the accrual of interest. It is also crucial to stay in communication with Sallie Mae and seek one-on-one help if needed. Additionally, consider ways to lower your total loan cost, such as making extra interest payments during the deferment period or exploring other smart loan-related decisions.

Frequently asked questions