When Can I Use Student Loan Forbearance or Deferment?

When Can I Use Student Loan Forbearance or Deferment?

Each year, former students struggle to make each monthly payment for their student loans. However, the coronavirus has given students the chance to take a break from making those monthly payments with an administrative forbearance. This forbearance will not last forever though. Many students who are struggling financially could benefit from other options like deferment. If your financial situation worsens and puts you closer to bankruptcy, then consider seeking answers from a Tennessee bankruptcy attorney.


The first thing you will want to start with when it comes to assessing your student loan repayment options is differentiating between Tennessee student loan deferment and forbearance. Student loan forbearance and deferment both grant you the ability to not make student loan payments for a certain period of time. The difference between these two is that forbearance is usually sought after deferment is rejected by the loaner.

Forbearance is also better for temporary financial circumstances that prevent you from paying off your student loan. You might be able to qualify for forbearance as an alternative if your deferment request is denied. However, to have a forbearance request approved, you will need to go through the student loan lender. This means you may have to wait a while and there is no automatic guarantee.

With student loan deferment, you can automatically qualify as long as you meet either of the following conditions:

  • Working less than 30 hours a week or have no job
  • Serving in the U.S. military or Peace Corps
  • Enrolled in school half-time
  • Undergoing a graduate fellowship program
  • In rehabilitation training

You may also qualify for either deferment or forbearance if your financial circumstances are dire. Do not hesitate to seek help from an experienced bankruptcy lawyer if you find yourself in a financial crisis.


If deferment and forbearance do not work, you have other Tennessee student loan repayment options. For one, the coronavirus has led to an administrative forbearance on all federal student loans. This means if your student loans are federal loans, you have until December 31st of this year to prepare for making your monthly payments again. At the same time, you have the option to make payments on your federal loans anytime you wish.

You can also request an income-driven repayment plan for your student loans. A plan like this will let you reduce your monthly payments according to your income and family size. For some people, this might come out to as little as zero dollars a month. The only downside is you will have to still pay any taxes that build up with this type of plan. One other option is Tennessee student loan forgiveness.


Making student loan payments at a consistent rate during the uncertain times of the coronavirus can be difficult. Consider seeking legal advice from our legal team in Chattanooga, Tennessee, and North Georgia if you ever find yourself close to bankruptcy. Contact Tom Bible Law today at (423) 690-7712 to talk to a Bankruptcy lawyer in Tennessee for a free consultation. Our Tennessee bankruptcy attorneys are located in Chattanooga and Tullahoma.

Related Posts
  • Student Loan Debt and Bankruptcy: What Are Your Options? Read More
  • Bankruptcy and Student Loans: What You Need to Know Read More
  • Should I Delay or Pay Off My Student Loans Early? Read More