Student Loans

Procedure Statement 14: Service Deferments

Policy

Service Deferments should be processed only as allowed by the respective loan fund guidelines.

The Student Loans Office:

1. Receives request for deferment through e-mail, over the phone or on the back of the monthly statement. Reviews and mails the requested forms or refers borrower to the Student Loans Web Site for forms.

2. Receives and reviews completed deferment form.
   1. If approved, keys deferment transaction on computer. Files completed form in borrower's folder.

   2. If rejected, notifies borrower and files in borrower's folder.

   Notes: A deferment period cannot exceed twelve months. The deferment date must be subsequent to the current month. "Deferment date" is date through which payment is deferred, upon receipt of documentation. The due date is the following month.

   Statements will not be generated during the deferment period. The borrower will be sent a cancellation form at the end of the deferment. They will also be sent another deferment form for the coming year.

   If a borrower leaves their job during the deferment period making them ineligible for cancellation, they are taken out of deferment as of the date they become ineligible and then they're given a six-month sub-grace.