Unemployment Deferment

Options for Financial Difficulties

If you are currently unemployed and seeking full-time employment, you are entitled to defer your student loans. You can also qualify for this deferment if you are under-employed and seeking full-time employment. You are considered under-employed if, in the last 90 days, you have worked an average of less than 30 hours per week.

To qualify, you must be registered with an employment agency, such as your state's jobs bureau, and be able to provide a list of four places where you have sought full-time employment. Temporary agencies do not qualify as an employment agency.

To receive this deferment, you must file a completed deferment request form and an unemployment deferment request form. If under-employed, you must also provide documentation displaying the hours worked over the last 90 days.

If your loan was made before July 1, 1993, you should know that on October 7, 1998, this type of deferment was first made available to you. This entitlement is not included in your promissory note. Please note that you will not be eligible for this type of deferment for activity prior to October 7, 1998, unless expressly entitled per your promissory note.

For all loans, you are limited to a total of three years of unemployment deferments.