FFEL/Direct Loan Deferments for Performed Services

Students receiving federal aid under the Federal Family Education Loan (FFELP) Program, and parent borrowers of PLUS loans made before August 15, 1983, are eligible for a deferment of interest and principal payments for:

  1. Serving as volunteer in the Peace Corps. The lender must grant a deferment for the borrower's full term of service in the Peace Corps, not to exceed three years. To qualify, the borrower shall provide the lender with a statement from an authorized official of the Peace Corps certifying-
    1. That the borrower has agreed to serve for a term of at least one year;
    2. The date on which the borrower's service began; and
    3. The date on which the borrower's service is expected to end.
  2. Full-time volunteer service in Action (Domestic Volunteer Service Act of 1973) programs. To qualify for a deferment as a full-time paid volunteer in an ACTION program, the borrower shall provide the lender with a statement from an authorized official of the program certifying-
    1. That the borrower has agreed to serve for a term of at least one year;
    2. The date on which the borrower's service began;
    3. The date on which the borrower's service is expected to end.
  3. Full-time volunteer service for a tax-exempt organization. To qualify for a deferment as a full-time paid volunteer for a tax-exempt organization, a borrower shall provide the lender with a statement from an authorized official of the volunteer program certifying- That the borrower-
    1. Serves in an organization that has obtained an exemption from taxation under section 501(c)(3) of the Internal Revenue Code of 1986.
    2. Provides service to low-income persons and their communities to assist them in eliminating poverty and poverty-related human, social, and environmental conditions;
    3. Does not receive compensation that exceeds the rate prescribed under section 6 of the Fair Labor Standards Act of 1938 ( the Federal minimum wage ), except that the tax-exempt organization may provide health, retirement, and other fringe benefits to the volunteer that are substantially equivalent to the benefits offered to other employees of the organization;
    4. Does not, as part of his of her duties, give religious instruction, conduct worship services, engage in religious proselytizing, or engage in fund-raising to support religious activities; and
    5. Has agreed to serve on a full-time basis for a term of at least one year;

The date on which the borrower's service began; and
The date on which the borrower's service is expected to end

The student/borrower requests these deferments directly from his lender(s).

Student/borrowers of Federal Perkins and/or Direct Loans are eligible for deferments generally under the same conditions as above, but must request these deferments directly from the institutions, which loaned the student the money.