December 13, 2007
As a result of final regulations, two major changes have been made to simplify the deferment process for borrowers and lenders.
1) For borrowers whose first loan was disbursed on or after July 1, 1993, lenders may
now grant a deferment based upon information from another loan holder or NSLDS.
The deferment can be based on a previously granted FFELP or Direct Loan deferment
for the same reason and period, provided there is no conflicting information regarding
the deferment eligibility. The borrower must request the deferment verbally or in writing.
If this process is used to grant a deferment, the lender must send the borrower a
notice indicating that the deferment has been granted. The notice must give the
borrower the option to pay accruing interest on any unsubsidized portion and the
option to cancel the deferment.
2) Lenders may now grant a military service or armed forces deferment request based on
eligibility documentation received from either the borrower or the borrower's
representative. The borrower's representative can be a member of the borrower's family
or another reliable source.
Lenders must send a notice to the borrower indicating that the deferment has been
granted and giving the borrower the option to cancel the deferment. Lenders have the
option of notifying the borrower's representative regarding the outcome of the
deferment request.