Postponing Payments

Trouble Making Payments

If you're having trouble making payments or if you anticipate that you may have trouble making payments, contact CornerStone immediately. We will help you find your best option, including but not limited to:

Postponing Payments

The two methods of postponing your student loan payments are deferment or forbearance. You can find out if you qualify for a deferment or forbearance by taking the eligibility quiz in Account Access.

Deferment

What is deferment?

Deferment is a period of time in which your payments are temporarily postponed. You have to meet specific criteria to qualify for deferment. To be eligible for a deferment your loans must be in repayment and you must provide CornerStone with appropriate documentation.

What deferments may be available?

Eligibility requirements differ for each deferment type. Detailed eligibility requirements are available on each deferment request form. Deferment may be available to you in the following situations:

If you have a Direct loan that was disbursed before July 1, 1993, you may be eligible for additional deferments. Contact CornerStone for more information about these additional deferments.

Does interest accrue during deferment?

During deferment, any accrued interest on your subsidized loans will be paid by the U.S. Department of Education. You are responsible for any accrued interest on your unsubsidized or PLUS loan(s). If you do not pay the interest during the deferment period, it will be added to your principal (capitalized) at the end of the deferment period. Because interest is added to your principal when it is capitalized, you will pay more over the life of your loan.

Deferment Request Forms

You can use this calculator to see what the cost of deferment would be on your loans.

Forbearance

What is forbearance?

Forbearance is another tool you may be able to use to if you are having trouble making payments. If you are willing but financially unable to make your scheduled payments and do not qualify for a deferment, CornerStone may allow you to temporarily reduce the payment amount or temporarily postpone your payments. During forbearance you are responsible for the interest that accrues on both subsidized and unsubsidized loans. There is no fee to receive forbearance.

What types of forbearance may be available?

There are two main types of forbearance: discretionary and mandatory. If a forbearance is discretionary, CornerStone decides whether or not to grant forbearance. You can request a discretionary forbearance if you are experiencing financial hardship or illness. If a forbearance is mandatory, CornerStone will grant it as long as you meet all eligibility criteria. You can request a mandatory forbearance if:

Does interest accrue during forbearance?

You are responsible for paying interest that accrues during forbearance. Any interest you don't pay during the forbearance period will be added to your principal balance (capitalized) at the end of the forbearance period. Because interest is added to your principal when it is capitalized, you will pay more over the life of your loan.

Forbearance Request Forms

You can use this calculator to see what the cost of forbearance would be on your loans.