Deferments With No Cancellation Provisions

The following deferments are available under the Perkins loan program and do not have cancellation provisions.

Student Deferment

  • Enrolled at least half-time
  • Form must be submitted at the beginning of each period of enrollment
  • Enrollment verification provided by the Registrar's office of your school is acceptable
  • Deferment is automatic only for students enrolled at UT-Austin unless your loan is past due
  • Borrowers in medical internship or residency program are NOT eligible except for borrowers in a
    dentistry program

Student Form

Economic Hardship

  • Defer for up to 1 year at a time – not to exceed 3 years.
  • Borrower must fall within one of the following categories:
    • Automatic deferment if granted an economic hardship on another federal student loan for the same dates for which you request this deferment.  A copy of the approval letter from the lender giving the beginning and ending dates of the hardship period is required.
    • You or your family receive federal or state public assistance such as Aid to Families with Dependent Children, Supplemental Security Income, Food Stamps, or state general public assistance. You must provide documentation of these payments.
    • You are serving as a Peace Corps volunteer.  Documentation certifying your period of service in the Peace Corps required.
    • You work full time and your monthly income does not exceed the larger of (A) the Federal Minimum Wage Rate ($1,256.67) or (B) 150% of the poverty guidelines for your family size and state.  Documentation of income is required.

If you qualify for deferment under items 4 or 5 above and file for a subsequent period of deferment less that one year after the end of a deferment, you must submit a copy of your federal income tax return if filed within the eight months preceding the date of the deferment request. 

Principal and interest are deferred during the approved period.  If your situation changes before the end date of the deferred period, it is your responsibility to notify the University of Texas at Austin.

Economic Hardship Form

Unemployment

  • Defer for up to 1 year at a time
  • You must reapply each year (up to 3 years)
  • Should be able to show evidence of a job search
    i.e. letters of Interest, letters of rejection, or registration with an employment agency

Unemployment Form

Graduate Fellowship

A borrower may defer repayment if he or she is enrolled and in attendance as a regular student in a course of study that is part of a graduate fellowship program approved by the Department of Education, including graduate or postgraduate fellowship-supported study (such as a Fulbright grant) outside the United States. To receive deferment for enrollment in a approved graduate fellowship program (or has been accepted by the program).

To qualify for a deferment for study in a graduate fellowship program, a borrower shall provide The University of Texas at
Austin with:

  • The Student Deferment Request form, once each year during the fellowship period and
  • A statement from an authorized official of the borrower's fellowship program certifying—
    • That the borrower holds at least a baccalaureate degree conferred by an institution of higher education;
    • That the borrower has been accepted or recommended by an institution of higher education for acceptance on a
      full-time basis into an eligible graduate fellowship program; and
    • The borrower's anticipated completion date in the program.

For purposes of the Student Deferment, an eligible graduate fellowship program is a fellowship program that—

  • Provides sufficient financial support to graduate fellows to allow for full-time study for at least six months;
  • Requires a written statement from each applicant explaining the applicant's objectives before the award of that
    financial support;
  • Requires a graduate fellow to submit periodic reports, projects, or evidence of the fellow's progress; and
  • In the case of a course of study at a foreign university, accepts the course of study for completion of the fellowship program.

Please note:

  • Enrollment must be full-time
  • Form must be submitted at the beginning of the program and once a year until completed.
  • Enrollment verification provided by the school is acceptable. Program must be one that has been approved by the
    Department of Education, Washington D.C.
  • Includes graduate or post-graduate fellowship-supported study such as a Fulbright grant outside the United States.

Graduate Fellowship Deferment Request

Rehabilitation Training

  • Form must be submitted at the beginning of the program and periodically
    during the program to verify continued enrollment.
  • Program must be approved the Department of Education, Washington D.C.
  • The agency is licensed, approved, certified, or otherwise recognized by a State agency responsible
    for programs in vocational rehabilitation, drug abuse treatment, mental health services, or alcohol
    abuse treatment; or by the Dept. of Veterans Affairs
  • The agency must provide the borrower:
    • A written plan individualized to the borrower's needs.
    • Date the program will end.
    • Require substantial commitment from the borrower.

Substantial Commitment is defined by the Department of Educations as
a "commitment of time and effort that would normally prevent the borrower
from holding a full-time job either because of the number of hours that
must be devoted to rehabilitation or because of the nature of the rehabilitation".

Rehabilitation Training Form

Military Deferments

The College Cost Reduction and Access Act of 2007 (CCRAA) and the Heroes Act made some major changes in the
provisions for military deferments.

  • Military Service Deferment
    • A borrower who is serving on active duty or performing qualifying National Guard duty in connection with
      a war, military operation, or national emergency does not need to pay principal or interest on Perkins loans.
    • Deferment begins on the date of mobilization and ends 180 days after the demobilization
      date for mobilization dates that include Oct. 1, 2007 or have begun since Oct. 1, 2007. This is available each
      time a borrower is demobilized after qualifying service.
    • The qualifying service is period of mobilization.
    • The three-year limit has been removed.
    • This is available to all outstanding loans in repayment as of Oct. 1, 2007.
  • Active Duty Student Deferment
    • Qualifying students are members of the National Guard, Armed Forces Reserves, and retired members of the
      Armed Forces.
    • Students must be enrolled in postsecondary school or within six months prior to activation.
    • This is a 13-month deferment following the completion of their active duty military service.
    • Students do not need to be activated during a war, national emergency, or other military operation.
    • National Guard members are eligible if activated by the state under federal approval or if activated by
      the state under state statue or policy.

Some borrowers may be eligible for both of the above deferments. If so, the overlapping time periods will
run concurrently.

Military Form

Cancer Treatment

Qualified borrowers may receive a deferment on their qualifying loans while they are receiving cancer treatment, and for the six months following the conclusion of their treatment. The deferment has no fixed time limit.

A borrower may qualify for the deferment of their loans which entered repayment on or before September 28, 2018. Loans which were made before September 28, 2018, but which were not in repayment on that date because the borrower was in an in-grace or in-school status are not eligible for the deferment and will not become eligible when they do enter repayment. In addition, a deferment cannot be granted for a period of treatment before September 28, 2018.

Perkins Loan borrowers will receive a six-month post-deferment grace period before payments resume. This grace period is in addition to the six-month period of deferment that the borrower will receive after cancer treatment ceases.

Cancer Treatment