Written By Melanie Lockert
According to the Center for Disease Control (CDC), 1.6 million people are diagnosed with cancer each year in the U.S. Receiving a cancer diagnosis can be overwhelming, and the stresses of daily life, like repaying your student loan debt, can add to it.
For federal student loan borrowers dealing with cancer, a cancer deferment for student loans provides some financial relief.
Cancer deferment for student loans
Dealing with cancer can be mentally, emotionally, physically, and financially draining.
To help borrowers, legislation was approved in 2019 that lets eligible cancer patients halt their student loan payments while under active cancer treatment. This was outlined in the Department of Defense and Labor, Health and Human Services, and Education Appropriations Act and Section 309 of the Continuing Appropriations Act.
The legislation also pauses student loan payments for six months after a borrower’s cancer treatment ends. The goal is to free-up borrowers’ funds from monthly payments during this time so they can focus on treatment and recovery.
Also, you depending on your loan type, you might not be charged interest during this deferment for many of the student loans.
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Eligibility requirements for the cancer deferment for student loans
To qualify for the cancer treatment deferment, you must confirm that you’re undergoing cancer treatment and have an eligible federal student loan. The loan must be under the following programs:
- Direct Loan Program
- FFEL Program
- Perkins Loan Program
Additionally, the student loans must have entered repayment on or before September 28, 2018. Loans made after September 28, 2018, also qualify as well.
Federal student loans can go by different names even if they’re part of the umbrella programs listed above. The following student loans are eligible:
Direct Loan student loans
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans
- Direct Consolidation Loans
Federal Family Education Loan (FFEL) student loans
- Federal Stafford Loans
- Federal PLUS Loans
- Federal Consolidation Loans
- Federal Supplemental Loans for Students (SLS)
Federal Perkins Loan Program student loans
- Federal Perkins Loans
- National Direct Student Loans (NDSL)
- National Defense Student Loans (Defense Loans)
If you have an eligible federal student loan under one of these programs and are managing cancer treatment, you can request a cancer treatment deferment for student loans.
Private student loans and cancer treatment
The cancer treatment deferment option is only available for federal student loan borrowers.
If you have private loans and are in treatment for cancer, talk to your lender about its deferment and forbearance options. Although it might not offer as generous an option, they might still be able to offer you a window to postpone loan payments.
Talk to your private lender as soon as possible to discuss your options and see if you qualify for relief benefits to lessen the burden.
Applying for cancer deferment for student loans
If you have a qualifying federal loan and are getting treated for cancer, you request to put your payments on hold by filling out the Cancer Treatment Deferment Request Form. The form requires you to fill out three sections:
- Section 1. Complete your personal information such as full name, address, phone number, and Social Security number. The government mainly uses your SSN to verify your identity and assess your eligibility.
- Section 2. You’ll need your cancer physician to complete this section. It asks for your physician’s contact information, and questions about your treatment, whether the treatment is complete or not, the start date of your cancer treatment, and its proposed end date. Your physician is required to sign and date this section.
- Section 3. This section notes that you agree to place any ineligible federal loans into forbearance. You can choose whether to make interest payments on your ineligible loans during forbearance. Make your selection, certify that you understand the terms and conditions of the deferment request, and mark your approval for the request by signing and dating this section.
The deferment can last for one year. If your cancer treatment goes beyond that time period, your physician can fill out an additional cancer treatment deferment request to extend the pause on student loan payments.
Complete the application by hand using ink to fill out the application, or complete the form electronically. You must return the cancer treatment deferment request to your loan holder or servicer.
You might need to complete multiple forms if you have different loan servicers for various student loans. If you have any questions, contact your loan servicer immediately.
The bottom line
Having a cancer diagnosis is a life-altering event that can take up a lot of your resources. During this difficult time, focusing on your healing is essential. If you’re a federal student loan borrower with eligible loans, this deferment option provides much-needed relief and one less monthly payment to worry about.
Although it doesn’t take away from the stress of your diagnosis and what you’re going through, it’s a way to pause student loan payments so you can focus on the most important thing — you.
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