Deferment & Forbearance FAQ

		What exactly is deferment and forbearance?
		A deferment is a period of time during repayment in which the borrower, upon meeting certain conditions, is not required to make regular monthly payments. Deferment types include: in school, unemployment, economic hardship, graduate fellowship and rehabilitation training. A forbearance is a period of time during repayment in which the borrower is permitted to temporarily postpone making regular monthly payments. For example, a forbearance may be granted if the borrower does not qualify for a deferment or is experiencing financial difficulty.

		How do I know if I am eligible for a deferment or forbearance?
		The requirements for each deferment or forbearance are different and depend upon your individual circumstances. Please use our Deferment & Forbearance Advisor to determine the options for which you may be eligible.

		How do I request a deferment or forbearance for my student loan?
		To request a deferment or forbearance, you must complete the appropriate application. Some types of deferment and forbearance requests may now be completed online. You can also download a blank application for a deferment or forbearance, or request that one be sent to you via mail. Use our Deferment & Forbearance Advisor to see what options are available to you, and then view the various application methods for each deferment or forbearance type.

		Can I receive a deferment or forbearance on my CitiAssist® Loan?
		Yes! You may receive an In-School Deferment for up to ten years for undergraduate students and up to four years for graduate students if you are eligible. Some programs allow you to defer your loan payments for a longer period, please refer to your promissory note for specific details. Health professions and law and bar study students can defer their loan payments for up to four years. You may also receive up to 12 months of forbearance time depending on your situation. For health professions students, an additional five years of residency deferment may be available. Use our Deferment & Forbearance Advisor to see if you are eligible for any of these deferment or forbearance options.

		Can I receive a deferment or forbearance on my PLUS Loan?
		Yes! Citibank offers a Lender Option Forbearance to Parent PLUS Loan borrowers who are financing their children's education. This forbearance allows parents who are experiencing financial difficulties to postpone repayment of Citibank-serviced PLUS Loans for up to 48 months while their child is in school. The forbearance is granted in 12-month increments. In addition, parents who took out a PLUS Loan prior to 7/1/1993 are eligible for a deferment if they or the child for whom they took out the loan is enrolled in school at least half-time. Graduate students obtaining a PLUS Loan on their own behalf on or after 7/1/2006 are eligible for In-School Deferment if they are enrolled at least half-time for the loan period as certified by the school. Please check the Deferment & Forbearance Advisor for more details about various types of deferments and forbearances for which you may be eligible.

		Will I be responsible for the interest if I receive a deferment?
		It depends on the type of student loan(s) that you have. For a Subsidized Stafford Loan, the interest will be paid by the federal government for the period of time the deferment is granted. For Unsubsidized Stafford Loans you will be billed for the interest. During this time, you will have the option to pay the interest bills or allow the unpaid interest to be added to the principal balance of your loan(s) at the end of the deferment period. This process of adding interest to the principal balance is known as "capitalization."

		When should I apply for a deferment or forbearance?
		You should apply at least 30 days before you want the deferment or forbearance to start. However, it would be in your best interest to apply sooner.

		How long does it take for my deferment or forbearance to be processed?
		It takes approximately 3-5 business days for a deferment or forbearance to be processed once the completed application has been received by Citibank.

		What happens after I have submitted my form?
		We will review your application to make sure the information is complete. You will be notified in writing by mail whether or not your deferment or forbearance has been approved or denied. Your original payment schedule will remain in effect until your application has been processed and approved. Remember that you need to continue making payments on your loan(s) until you have received written notification from Citibank.

		How long will my deferment or forbearance last?
		The maximum length of your deferment or forbearance will depend on your situation and the type of deferment or forbearance for which you applied. Our Deferment & Forbearance Advisor will help you to determine the maximum term that applies to you.

		How do I renew my deferment or forbearance?
		All deferment and forbearance options are different, so please check the individual requirements. You can view a full listing of the deferment and forbearance options. If your situation has not changed and you need another application, you may either contact us for the appropriate form or complete the online request form. Remember to fill in all the requested information and return it to us with the necessary certification if applicable. If any information or certification is missing processing time will be delayed.

		When should I renew my deferment or forbearance?
		Your deferment or forbearance should be renewed no earlier than 60 days prior to the end date of your current deferment or forbearance. If you're a student attending school at least half-time, you should renew as soon as your school registrar can certify your enrollment.

		What if I have questions or my school status changes?
		If your status changes, please contact us. You may contact us online. Remember to include your account number and current address. You may or may not have to submit another deferment or forbearance form.

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