Health, Science and Mathematics Student Loan Program (HSM) Deferment FAQ

A deferment is a period in which loan forgiveness or cash repayment of a loan is postponed or delayed. Although payments are not due during a deferment period, interest at the rate of ten percent (10%) will continue to accrue on the outstanding principal balance of your loan. Each approved period of deferment will extend the HSM repayment period by the length of the deferment. A borrower may apply for deferment by completing and returning a Postponement/Deferment Form to NCSEAA for approval.

What circumstances qualify for deferment under the HSM loan program?

Authorized deferments include the following:

• personal illness for a period not to exceed twelve (12) months per each occurrence;
• family medical leave, which includes maternity or paternity leave upon the birth or adoption of a child or leave to provide necessary care for an immediate family member who is sick or disabled for a period not to exceed twelve (12) months per occurrence;
• unemployment during any period of time not to exceed twelve (12) months per each occurrence while a borrower is conscientiously seeking and unable to obtain qualified employment;
• full-time enrollment at an accredited postsecondary institution located within the United States for a period not to exceed twelve (12) months; and
• residency, internship, fellowship for borrowers required to complete postgraduate training as a requirement to practice or work in his/her profession.

How do I apply for a deferment?

You must complete a Postponement/Deferment Form  and return it to NCSEAA for approval. You are responsible for submitting your deferment request, along with the required documentation, before your account becomes past due. If your account is in a cash repayment status, you should continue to remit cash payments until your deferment request is approved.

Does interest accrue during an approved deferment period?

Yes. Interest continues to accrue at 4% for borrowers approved for residency, internship, fellowship, or other required postgraduate training deferment. Borrowers approved for personal illness, family medical leave, unemployment, or full-time student enrollment will accrue interest at the rate of 10%.

Can I apply for a student deferment if I am enrolled as less than a full-time student?

No. You must be enrolled as a full-time student in order to qualify for a student deferment.

What if my status changes before my approved deferment expires?

If your status changes prior to the expiration of an approved deferment, you must notify NCSEAA of the status change.

Whom should I contact if I have additional questions concerning deferment of my HSM loan?

Additional information is available in the HSM Rules and Regulations or you may contact Repayment Services staff between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday.