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SECTION 5: INSTRUCTIONS FOR COMPLETING THE FORM
Type or print using dark ink. Enter dates as month-day-year (mm-dd-yyyy). Use only numbers. Example: January 31, 2012 = 01-31-2012. An authorized official must either complete Section 4 or
attach the organization’s own signed certification listing the required information. Include your name and account number on any documentation that you are required to submit with this form. If
you need help completing this form, contact your loan holder. If you want to apply for a deferment on loans that are held by different loan holders, you must submit a separate deferment request to
each loan holder.
Return the completed form and any required documentation to the address shown in Section 8.
An authorized official who may complete Section 4 is your Commanding or Personnel Officer of the Armed Forces or an authorized official of the U.S. Public Health Service, Peace Corps,
ACTION Programs, tax-exempt organization, or NOAA.
Capitalization is the addition of unpaid interest to the principal balance of your loan. The principal balance of a loan increases when payments are postponed during periods of deferment or
forbearance and unpaid interest is capitalized. As a result, more interest may accrue over the life of the loan, the monthly payment amount may be higher, or more payments may be required.
The chart below provides estimates, for a $15,000 unsubsidized loan balance at a 6.8% interest rate, of the monthly payments due following a 12-month deferment that started when the loan
entered repayment. It compares the effects of paying the interest as it accrues, capitalizing the interest at the end of the deferment, and capitalizing interest quarterly and at the end of the
deferment. Please note that the U.S. Department of Education (the Department) and many other holders do not capitalize interest on a quarterly basis. The actual loan interest cost will
depend on your interest rate, length of the deferment, and frequency of capitalization. Paying interest during the period of deferment lowers the monthly payment by about $12 and saves
about $426 over the lifetime of the loan, as depicted in the chart below.
Treatment of Interest Accrued
During Deferment
Amount
for 12 Months
Be Repaid
Payment
Payments
Repaid
Paid
Interest is capitalized at the end of deferment
Interest is capitalized quarterly during deferment
and at the end of deferment
$15,000.00 $1,048.51 $16,048.51 $184.69 120 $22,162.41 $7,156.10
*Total amount repaid includes $1,022.09 of interest paid during the 12-month period of deferment.
A deferment is a period during which you are entitled to postpone repayment of the principal balance of your loan(s). Interest does not accrue during a deferment on a Direct Subsidized Loan,
a Direct Subsidized Consolidation Loan, a subsidized Federal Stafford Loan, or, in some cases, the subsidized portion of a Federal Consolidation Loan (see Note). Interest does accrue during
a deferment on a Direct Unsubsidized Loan, a Direct PLUS Loan, a Direct Unsubsidized Consolidation Loan, an unsubsidized Federal Stafford Loan, a Federal PLUS Loan, or a Federal SLS
Loan. Note: Interest does not accrue on a Federal Consolidation Loan during a deferment only if: (1) the application for the Federal Consolidation Loan was received by your loan holder on or
after January 1, 1993, but before August 10, 1993; (2) the application was received by your loan holder on or after August 10, 1993, and the Federal Consolidation Loan includes only Federal
Stafford Loans that were eligible for federal interest subsidy; or (3) the application was received by your loan holder on or after November 13, 1997, in which case interest does not accrue on
the portion of the Federal Consolidation Loan that paid a subsidized Direct Loan or FFEL Program loan(s).
The Federal Family Education Loan (FFEL) Program includes Federal Stafford Loans, Federal PLUS Loans, Federal Consolidation Loans, and Federal Supplemental Loans for Students
(SLS).
A forbearance is a period during which you are permitted to temporarily postpone making payments, allowed an extension of time for making payments, or temporarily allowed to make
smaller payments than scheduled.
The holder of your Direct Loan Program loan(s) is the Department. The holder of your FFEL Program loan(s) may be a lender, guaranty agency, secondary market, or the Department.
The William D. Ford Federal Direct Loan (Direct Loan) Program includes Federal Direct Stafford/Ford (Direct Subsidized) Loans, Federal Direct Unsubsidized Stafford/Ford (Direct
Unsubsidized) Loans, Federal Direct PLUS (Direct PLUS) Loans, and Federal Direct Consolidation (Direct Consolidation) Loans.
SECTION 7: ELIGIBILITY REQUIREMENTS
To qualify for any of the deferments listed in Section 2:
• For Direct Loan Program borrowers:
o You must have had an outstanding balance on a FFEL Program loan that was first disbursed before July 1, 1993 when you obtained your first Direct Loan.
o Direct PLUS and Direct PLUS Consolidation Loans are not eligible for the NOAA Deferment.
• For FFEL Program borrowers:
o You must have an outstanding balance on a FFEL Program loan that was first disbursed before July 1, 1993, or had a balance on a FFEL Program loan that was first disbursed before
July 1, 1993 when you obtained a loan that was first disbursed on or after July 1, 1993.
o Federal Consolidation Loans are not eligible for these deferments.
o Federal PLUS Loans are not eligible for the NOAA Deferment and are only eligible for the other deferments listed in Section 2 if the Federal PLUS Loan was first disbursed before
August 15, 1983.
o Your Federal Stafford and SLS Loan(s) are eligible for the NOAA Deferment only if your first FFEL Program loan was first disbursed on or after July 1, 1987 and before July 1, 1993, or
you had an outstanding balance on a FFEL Program loan that was first disbursed on or after July 1, 1987 and before July 1, 1993 when you obtained a FFEL Program loan on or after
July 1, 1993.
You may defer repayment of my loan(s) while you are:
• On active duty in the ARMED FORCES of the United States. Maximum eligibility is 3 years. (This is a combined limit with Public Health Service and NOAA deferments.) To qualify, you
must be on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard.
Note: Borrowers enlisted in a reserve component of the Armed Forces or the National Guard (while on active duty status in the Army or Air Force Reserves) may qualify for this deferment
only if: (1) serving full time for a period expected to last at least 1 year, or (2) serving under an order for national mobilization.
• Serving full time as an officer in the Commissioned Corps of the PUBLIC HEALTH SERVICE. Maximum eligibility is 3 years. (This is a combined limit with Armed Forces and NOAA
deferments.)
• Serving in the PEACE CORPS. Maximum eligibility is 3 years. To qualify, you must have agreed to serve for a period of at least 1 year.
• A full-time, paid volunteer in the ACTION PROGRAMS. Maximum eligibility is 3 years. To qualify, you must have agreed to serve for a period of at least 1 year.
• A full-time paid volunteer for a TAX-EXEMPT ORGANIZATION. Maximum eligibility is 3 years. To qualify, you must:
(1) Be serving full time in an organization that has a tax exemption under Section 501(c)(3) of the Internal Revenue Code of 1986;
(2) Assist low income people and their communities in eliminating poverty and poverty-related human, social, and environmental conditions;
(3) Not earn more than the federal minimum wage; however, you may receive fringe benefits like those received by other employees of the organization;
(4) Not engage in religious instruction, proselytizing, fund-raising to support religious activities, or conduct worship services as part of your duties; and
(5) Have agreed to serve for a period of at least 1 year.
On active duty in the NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION (NOAA). Maximum eligibility is 3 years. (This is a combined limit with Armed Forces and Public
Health Service Deferments.)
SECTION 8: WHERE TO SEND THE COMPLETED DEFERMENT REQUEST
Return the completed form and any required documentation to:
(If no address is shown, return to your loan holder.)
If you need help completing this form, call:
(If no telephone number is shown, call your loan holder.)