A deferment allows a borrower to temporarily suspend making payments. Interest continues to accrue on the student loans during periods of deferment and unpaid interest that accrues during the deferment period will be added to the principal balance of the loan at the end of the deferment period. The student borrower and cosigner (if applicable) are equally responsible for the interest that accrues during the deferment period.
The most typical form of deferment is where the student borrower chooses to defer making payments while enrolled in school. There are also other forms of deferment, for more specific situations, such as military deferment for borrowers on active military duty.
There are no deferment options for borrowers who select the immediate repayment option. However, borrowers who select the immediate repayment option can request to change their repayment option after their loan is fully disbursed.
For Chase Select loan undergraduate and graduate borrowers who choose to defer principal and interest payments, or who choose to make interest-only payments, repayment of principal and interest begins the earlier of:
- Six months after either the student borrower graduates or is no longer enrolled in school, or
- 5½ years after the first disbursement date
Graduate loan borrowers who begin a medical residency or internship during their deferment period may request (subject to Chase’s approval) that their deferment end date on their graduate loans be extended as follows:
Six months after the residency or internship ends or the student borrower ceases to be enrolled in the internship or residency program, but not to exceed 8½ years after the first disbursement.