Deferment and Forbearance

If you drop out before graduating, your payments will start after your grace period expires. Many lenders will let you go back into deferment (i.e., suspend payments) if you go back to school to complete the degree for which you received the loan. You should check to see if deferment can be interrupted and reinstated with your lender.

You may also be able to postpone some of your payments after you leave school if you qualify for the lender's forbearance program. Forbearance programs usually involve deferment of the principal portion of your payment (or sometimes all of your payment) when you experience a medical or economic hardship. These programs are typically limited to a few months (not years) at a time and differ across all lenders. They are not legally required. Many lenders do not publish their forbearance programs in advance, because they change from time to time. You should ask if there is a forbearance program for your lender.