Will Students’ Loans Be Deferred Again?

Every student faces a financial challenge. Adapting to the living expenses and managing costs can be overwhelming since there are other expenses to settle.

A student loan comes in handy as it provides you with financial assistance, and there’s been a student loan deferment for a while since the covid-19 pandemic.

For instance, President Joe Biden of the United States has not requested student loan repayments since becoming head of state. 

This loan relief enables students to deal with other crucial problems first, and many enjoy the associated benefits. President Joe Biden prolonged this relief for a while, but unfortunately, it will expire this year on May 1, 2022.

Only federal student loan borrowers enjoy this relief, so it is best to prepare for this loan payment as soon as possible.

Key Takeaways

Many students take up student loans to help them pay for their living expenses. There’s been an ongoing student loan deferment since the pandemic that delayed student loan repayment but unfortunately ends on May 1, 2022.

Many students undergoing hardship, unemployment, cancer illness, rehabilitation, etc., consider deferment a great option. 

Also, these above-listed conditions are some qualifications for loan deferment eligibility. However, there are disadvantages to loan deferment; hence others consider alternatives like refinancing, working out a repayment strategy, etc.

Pros and Cons of Student Loan Deferment

Every situation has its positive and negative outcomes, which are almost inevitable. Student loan deferment is beneficial but possesses potential disadvantages.


  • Deferment of this loan is helpful when experiencing severe problems such as hardships and unemployment as it helps you financially.
  • Also, not worrying about loan repayment allows you to concentrate on more crucial matters. 


  • Unsubsidized student loans have disadvantages. Your reason for getting a student loan is to help with expenses, and while deferment puts your payment on hold, the interest still grows, adding more money to the loan you have to pay.

Eligibility for Students Loan Deferment

Some conditions that confirm your deferment eligibility on a federal student loan are:

Cancer Treatment Deferment

There are chances of students’ qualifications for this aid while procuring cancer therapy and for half a year after their cancer medications. 

In-school deferment 

This deferment type puts loan payments on hold when you’re schooling for a half-time minimum. Also, you get an additional six months which is a student loan grace period after your graduation. There’s no set duration for this loan as long as you’re schooling.


Having no job and obtaining unemployment privileges while striving to secure full-time careers approve you for three years deferment.

Rehabilitation training deferment

You can become eligible for loan deferment if you’re in an authorized rehabilitation center. Engaging in rehab programs that provide essential relief to patients suffering from drug abuse and many more conditions also validates you for this loan deferment.

Economic hardship deferment

Qualifications for this loan deferment type include receiving assistance from welfare agencies, having a full-time career but with an insufficient income for your family’s size, and occupancy or being among the peace corps. Either way, this deferment lasts for three years. 

Military service 

Qualifications for a student loan deferment on military service include having an active service in military duties and programs relating to war and federal emergencies. However, loan deferment becomes void during school resumption or 13 months after military duty.

Alternative to Student Loan Deferment

Other alternatives are available if you don’t fancy a student loan deferment.

Work out a repayment strategy

Discussing a repayment plan with lenders is a good decision for students with private loans. The student should pay half of the debt or even a quarter of the loan than pay zero since it accrues more interest. This attitude may move the lender to lessen the payment or find another suitable option.

Income-driven repayment plans

Federal student loans deliver incredible alternatives, and there are many government offers, including income-driven repayment plans, which help reduce loans to a considerable rate.


Refinancing is a food option for student loans as it minimizes payments and potential interests. But it is vital to be careful with some refinancing options available to avoid relinquishing the permit to other beneficial loans.

Read: Can International Students get FAFSA?


Student loans and deferment are very beneficial to many students. Unfortunately, the loan deferment is among the helpful programs that will come to their climax soon. It is vital to seek repayment options now and work towards it as there is no assurance of any other student loans deferment.