Graduate Medical Education

Loan Deferment

Student loans have various payback requirements. Some are deferrable while in training; most are not. Housestaff can no longer be considered students per the Omnibus Budget Reconciliation Act of 1989.

What is a Deferment?

A deferment means there are no payments required during an approved period of time. For subsidized Stafford Loans, interest does not accrue during the approved period. Federal Stafford/Direct Loans made prior to July 1, 1993, are deferrable for up to two years. Loans made after that date may only be deferred through an economic hardship deferment and are deferrable for up to three years if the individual meets the qualifications. Both types of deferments must be renewed every twelve months.

What is a Forbearance?

Many loans will allow forbearance while in training. A forbearance permits a student borrower a temporary period of time in which s/he may not make any payments on the loan, pay interest only, or make a payment less than the normal repayment amount. Interest still accrues during forbearance. Interest on the loan continues to accrue during a period of forbearance and all unpaid interest is capitalized at the end of the forbearance period. At the end of your forbearance, your payment schedule will be adjusted accordingly to repay the loan within the original term. Monthly loan payments will be higher following the forbearance. A forbearance must be requested through the lender or loan service.

Many loans must be paid back in full within a set time period (i.e. 10 years). Forbearance time is separate from the repayment time for some loans. Forbearance may serve to shorten the time period for payback and increase the payments as well, so it is not generally recommended unless all other options have been explored.

Fellowship Deferments

Residents wishing to obtain a deferment for longer than 2 years may try to use the "fellowship deferment" category. Fellowship deferment forms usually outline requirements that the fellow must meet in order to be eligible for deferment. The Graduate Medical Education Office cannot attest to the fulfillment of these requirements. The Graduate Medical Education Committee voted to direct responsibility for working with the lending institutions and fellows on establishing fellowship guidelines back to the program directors. The fellowship forms must be submitted to the appropriate department or division for completion and verification.

Additional Information

For additional information and resources about loans, select from the following:

Forms