Federal Perkins/NFLP, Defense and National Direct Student Loan (NDSL) Deferment and Cancellation
If you have a Federal Perkins Loan,a Nurse Faculty Loan, a Defense Loan, or a National Direct Student Loan (NDSL) you may be eligible to temporarily defer payment on the loan or to cancel part or all of it. Important: This information in this website is intended to be general in nature and to address the most common types of deferment and cancellation. Not every type of deferment and/or cancellation depends on the type of loan and/or the date on which the loan was borrowed. There are also specific definitions of certain eligibility criteria. The deferment conditions described on the website apply to all Perkins/NFLP/NDSL/Defense loans, regardless of when the loan was made; there are additional deferments under the Perkins Loan Program, but they only apply to Perkins/NFLP/NDSL/Defense loans made before July 1, 1993.
What is deferment?
- During a period of deferment, you are not required to make payments toward your loan. Interest does not accrue during periods of deferment.
Do I qualify for deferment?
- Depending on the type of loan you have, and when that loan was borrowed, you may be eligible to defer repayment of your loan if you are:
- In school (including graduate/post-graduate fellowships and rehabilitation training)
- Experiencing economic hardship
- Engaging in service that qualifies you for cancellation
How do I apply for deferment?
- Complete the appropriate form in the "ECSI Forms" section on the ECSI website. Mail these forms to:
How long may I defer payment on my loan?
- There is no limit to how long you can defer payment on your loan while you are enrolled:
- At least half-time in an eligible institution, or
- In a graduate or post-graduate fellowship program, or
- In a rehabilitation program for disabled individuals
- You may only defer payment for up to a total of three years on the basis that you are:
- Seeking but unable to find full-time employment
- Experiencing economic hardship
- You may defer payment while you are performing service that qualifies you for cancellation.
What is cancellation?
- Cancellation rewards individuals who perform certain types of public service or are employed in certain occupations. For each complete year of service, a percentage of the loan may be canceled. The total percentage of the loan that can be canceled depends on the type of service performed- in some cases 100% of a loan may be canceled. You cannot receive a refund of money you paid toward a loan even if you were eligible, or eventually become eligible, to cancel that portion of the loan.
Do I qualify for cancellation?
- Depending on the type of loan you have, and when that loan was borrowed, you may be eligible to cancel part or all of your loan if you have served as a:
- Volunteer in the Peace Corps or an ACTION program (including VISTA)
- Member of the U.S. Armed Forces (serving in an area of hostilities)
- Nurse or medical technician
- Law enforcement or corrections officer
- Head Start worker
- Child or family services worker
- Professional provider of early intervention services
- If a loan defaults and has been accelerated, an individual loses his or her eligibility for cancellation for services performed on or after the date of acceleration.
How do I apply for cancellation?
- Complete the appropriate form at the ECSI website. Mail these forms to:
Please fill out a Request for Hardship Deferment/Forbearance and mail to:ECSI P.O. Box 1278 Wexford, PA 15090