In certain situations, borrowers might qualify for deferment or cancellation of payment of their student loans. A separate request must be filed each year in a timely manner to avoid penalties.
If you have any questions about deferment benefits, contact the Student Loan office at (607) 255-7234 or via e-mail at uco-loans@cornell.edu.
You (the borrower) can request to “defer” (temporarily stop) payments on your student loans for up to a year at a time, under certain qualifying conditions. Deferment options vary, depending on the type of loan you owe, and you might be required to pay monthly interest during the deferment period.
Types of Deferments
- Education: relates to the borrower’s enrollment status as a student at an educational institution (sometimes referred to as “in-school” deferment)
- Public Service: applies to borrowers that are in the armed forces, Peace Corps, volunteers, or in public health service
- Economic Hardship: applies to borrowers dealing with specific types of economic hardships or unemployment
- Use to request deferment due to enrollment status or public service
- File yearly at the end of every deferment period
- Indicate your anticipated separation date on the form if you expect to be eligible for a deferment in the following year
- Use to request deferment due to an economic hardship
- File every six months at the end of every deferment period
In certain limited circumstances, you may be able to cancel payments on your student loan, either in whole or in part - meaning that you no longer have to pay it. In some situations, you won't be able to cancel the entire loan, but you may be able to get rid of a portion of the loan.
Types of Cancellations
- Teaching: applies to full-time teachers at eligible institutions or schools
- Public Service: applies to borrowers that are in the armed forces, Peace Corps, volunteers, or other qualifying public service
- File yearly at the end of every deferment period
- Indicate your anticipated separation date on the form if you expect to be eligible for a deferment in the following year
To be sure that you are continuously deferred during your graduate program, check with your student loan service provider and follow deferment directions for each semester you are half-time (5-8 credits).
Check that you are at least half-time (5-8 credits) and have completed your official university registration before Cornell University reports enrollment to the National Student Clearinghouse.
For students receiving a graduate federal student loan, borrowing through a graduate federal student loan will defer your graduate loans automatically each semester, but you should ensure that the service is deferring your undergraduate loans as well, particularly if your undergraduate loans were from a different lender.
If you stop borrowing through graduate loans but are still attending half-time at Cornell University, you can request an education deferment for your graduate loans by following the directions above.
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