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Welcome: How The Online Counseling Session Works Step One: Understanding Your Responsibilities Step Two: Preparing to Pay Back Your Student Loans Step Three: Payment Plans and Billing Procedures Step Four: Loan Deferment, Forbearance and Cancellation Benefits Step Five: Loan Consolidation May Be Helpful Step Six: Avoiding Delinquency and Default |
Step Four: Loan Deferment, Forbearance and Cancellation BenefitsDepending upon which loan program(s) you have borrowed from, you may be eligible for certain deferment or cancellation benefits. If you are eligible, you must submit a deferment or cancellation request form at least once a year (unless instructed otherwise). DefinitionsA deferment is a period of time during which you are not required to make loan installment payments while you are engaged in some eligible activity (such as full-time enrollment in school). Most deferments cover both principal and interest, meaning payments are not required and interest does not accrue during the deferred period. However, there are some programs that defer principal only, and interest continues to accrue and must be paid. A forbearance is a temporary postponement of payments, granted by the University of Washington under some conditions if you are willing but financially unable to make the required loan payments. Interest continues to accrue during the forbearance period, and must be paid. A cancellation benefit may allow all or a portion of your loan to be forgiven (cancelled) if you engage in certain eligible service occupations. Cancellation credit is given after you complete a year of eligible service. Apply for a deferment at the beginning of your service year, then apply for the cancellation credit at the completion of your service year. Filing ResponsibilitiesThe deferment process is not automatic. If you are eligible for any of these benefits, you must complete a request form and submit it to the UW Student Fiscal Services Office. You can request a deferment or cancellation form from our office, or you can download a form from the internet.It is important that you submit your request on time - at the time your regular installment is due. Late fees are charged for forms submitted late, just as they are for late payments. Follow the instructions on the form - be sure to include the type of benefit you are requesting, the period of eligibility, and the appropriate certification signature. You must also sign and date your request form. You will be notified of the results - whether your request was approved or denied - in writing after it has been processed. For more specific information, see our Deferment, Forbearance and Cancellation page. |
