Iowa Student Loan and lenders that offer supplemental private student loans through Aspire Servicing Center allow borrowers a set amount of deferment time.
Deferment is granted at the sole discretion of the lender. Borrowers may also be granted time if they are in a residency/internship program, serving in the military or having financial hardship. Supporting documentation is required. Aspire Servicing Center may request that borrowers in financial hardship provide a budget work sheet and make payments prior to granting deferment.
Loans Requiring Payment During the In-School Period
Loan options that require principal and interest payments or interest-only payments during the in-school and separation periods, which may not exceed 60 months, have a maximum 24 months of available deferment time.
During authorized periods of deferment, interest will continue to accrue even though no monthly payment is due. In no event will an authorized period of deferment increase the repayment period.
Loans Deferring Payment During the In-School Period
Loan options that do not require payments during the in-school and separation periods, have a maximum 84 months of available deferment time, including the in-school and separation periods.
During authorized periods of deferment, borrowers will receive interest-only statements and may choose to make monthly interest and/or principal payments. The lender strongly encourages borrowers to make payments that at least cover accrued interest to avoid increases to the loan balance. Authorized periods of deferment may increase the repayment period.