Loans

STC does not participate in any type of Federal Title IV student loan program.  Therefore, Direct and FFEL Stafford Loans and Federal Perkins Loans are not an option at this institution.

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Postponement of payments on Federal Student Loans

Under certain circumstances, you can receive a deferment or forbearance on your loan.  A deferment allows you to temporarily postpone payments on your loan.

If you have a subsidized loan, you will not be charged interest during the deferment.  If your loan is unsubsidized, you will be responsible for the interest on the loan during the deferment.  If you don't pay the interest as it accrues, it will be capitalized.  See the Loan Deferment Summary for the list of deferments available if your loan was first disbursed on or after July 1, 199.

For information on deferments for loans disbursed prior to that date, Direct Stafford Loan borrowers should contact the Direct Loan Servicing Center.  FFEL Stafford borrowers should contact the lender or agency holding the loans.  You can not receive a deferment if your loan is in default.

If you are temporarily unable to meet your repayment schedule but are not eligible for a deferment, you may receive forbearance for a limited and specified period.  During forbearance, your payments are postponed or reduced.

Whether your loans are subsidized or unsubsidized, you will be charged interest.  If you don't pay the interest as it accrues, it will be capitalized.

    For example, you may be granted forbearance if your are:

  • Unable to pay due to poor health or other unanticipated personal problems.

  • Serving in a medical or dental internship or residency.

  • Serving in a position under the National Community Service Trust Act of 1993.

  • Obligated to make payments on certain federal student loans that are equal to or greater than 20 percent of your monthly gross income.

Deferments and forbearances are not automatic.  If you have a Direct Stafford Loan, you must contact the Direct Loan Servicing Center to request either option.  If you have a FFEL Stafford Loan, you must contact the lender or agency that holds your loan.  For either program you may have to provide documentation to support your request.  You must continue making scheduled payments until you receive notification that the deferment or forbearance has been granted.