Student Loan Law: 4.3.2 Borrower’s Default Limits Eligibility for Deferment
An important limitation to the usefulness of the borrower’s deferment right is that the right exists only when borrowers are current or “delinquent” on the loan obligation, not when they are in “default.”27 If a borrower cannot qualify for a deferment because the loan is in default, the borrower can re-establish eligibility for a deferment by first getting the loan out of default.28