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Student Deferment
Borrowers can qualify for deferment on the basis of advanced professional training for the duration of that training if it is:

• Intended to further the borrower's knowledge and skills in the health professions discipline for which the loan was received;
• A prerequisite for professional practice; and
• An internship or residency program or other full-time training beyond the first professional degree.

A borrower who completes advanced professional training at an institution in a foreign country may be eligible for deferment, provided that the borrower will receive credit towards his or her board certification. It is the school's responsibility to make the final determination in this case.

Deferment form

An HPSL or LDS borrower, who is still a full-time student in a health professions school, may obtain deferments for a leave of absence to pursue full-time educational activities that are directly related to the health profession for which the borrower is preparing. The borrower must be taking the leave of absence with the intent of returning to the original school as a full-time student. The deferment is limited to two years.

The related educational activity must meet the following criteria for the borrower to obtain a deferment:

• The activity must be part of a joint-degree program or a formal program of joint study that is offered in conjunction with the health professions program for which the borrower is preparing;

OR

• The activity must enhance the borrower's knowledge and skills in the health profession for which the borrower is preparing as determined by the school.

Deferment form

Graduates of health professions schools who borrowed HPSL funds are eligible for deferments if they participate in certain fellowship training programs. The fellowship training must be directly related to the health profession for which the borrower obtained the HPSL. In addition, the borrower must enter into the fellowship either prior to the end of his/her advanced professional training or no later than 12 months after the borrower completed participation in that advanced professional training. The fellowship training itself must meet certain criteria in order for the borrower to obtain the deferment. Specifically, the fellowship training must be a:

• Full-time activity in research, research training or health care policy; and
• Formally established fellowship program which was not created solely for the borrower.

Deferment form

Graduates of health professions schools who borrowed HPSL funds are also eligible for deferments if they participate in certain educational activities. The educational activity must be directly related to the health profession for which the borrower obtained the HPSL. In addition, the borrower must enter into the activity either prior to the end of his/her advanced professional training or no later than 12 months after the borrower completed participation in that advanced professional training.

The related educational activity must meet the following criteria for the borrower to obtain a deferment:

• The activity must be part of a joint-degree program in conjunction with the health professions program for which the borrower received the HPSL or LDS;

OR

• The activity is required for licensure, registration or certification in the health profession for which the borrower received the HPSL or LDS;

OR

• The activity is a full-time educational program in public health, health administration, or a health care discipline directly related to the health profession for which the borrower received the HPSL or LDS.

Deferment form

Borrowers who perform active duty as a member of a uniformed service (Army, Navy, Marine Corps, Air Force, Coast Guard, the National Oceanic and Atmospheric Administration Corps, or the U.S. Public Health Service Commissioned Corps) are eligible for deferment for up to three years. Such service performed during the grace period does not count as part of the maximum deferment period for which the borrower is eligible, nor does it entitle the borrower to a grace period after the deferment period ends.

This deferment provision is specifically limited by statute to borrowers on active duty who are members of a uniformed service and does not apply to borrowers who are employed by one of the uniformed services in a civilian capacity. For example, a borrower who is working for the Public Health Service (PHS) and who is not a member of the Commissioned Corps would not qualify for deferment.

A borrower who is fulfilling an NHSC scholarship obligation through the "private practice option" or through the "private placement option" rather than as a PHS commissioned officer would not be eligible for deferment.

Deferment form

Borrowers who volunteer under the Peace Corps Act are eligible for deferment for up to three years. Such service performed during the grace period does not count as part of the maximum deferment period for which the borrower is eligible, nor does it entitle the borrower to a grace period after the deferment period ends.

Service in VISTA does not qualify for deferment.

Deferment form

HPSL and LDS borrowers may request a financial hardship forbearance if they are experiencing financial difficulty, but do not qualify for any other type of deferment. Forbearance only defers principal payments. Interest continues to accrue. All interest is due at the end of the forbearance period, and cannot be capitalized (added to the principal balance, and charged interest upon the new balance). Forbearance may be requested by completing our Financial Arrangement Form.

Please note – Forbearance periods count toward the 10-year repayment period allowed for HPSL and LDS. This will cause a balloon payment as the last payment in the 10-year cycle, which could be quite large. Forbearances should only be used when absolutely necessary.

Financial arrangement form