Graduate Fellowship Deferment
While payment is not required during periods of deferment, interest will continue to accrue on the Unsubsidized portions of your student loans. You have the option to pay this interest, or let it accrue. You should always verify with either your lender, or the Student Financial Services office that you qualify for deferment.
Once you are a Medical Resident there may come a time when you do not qualify for a deferment. In such situations, you may have to utilize a forbearance. Forbearance is the temporary postponement or reduction of your monthly student loan payment obligation. During forbearance interest accrues on the entire balance of your student loans, including your subsidized loans.
Medical Residents are eligible for Mandatory Residency Forbearance during their residency years. Mandatory Residency Forbearance requires that your lender allow you to postpone payment of your loans during your additional years of training. While this alleviates your monthly payment obligation, interest is still accruing on the entire balance of your student loans and will be capitalized upon entering repayment.
We encourage you to keep accurate records concerning your student loans as this will help you to be aware of grace period, deferment, and forbearance end dates so that you can (re)apply for them in a timely manner. This will also assist you in avoiding unnecessary interest capitalization, delinquency and default due to missed payments on your student loan obligations.