Principal Fellows Program (PFP) 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 PFP 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 PFP loan program?

Authorized deferments, section .0705 of the PFP Rules and Regulations , 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; and
• 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.

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 payments until your deferment request is approved.

Does interest accrue during an approved deferment period?

Yes. Interest, at the rate of ten percent (10%) continues to accrue during periods of approved deferment.

Can I defer my loan if I am a student?

No. There is no provision in the PFP Rules and Regulations for full-time or part-time student deferment under the Principal Fellows Program.

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 immediately of the status change.

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

Additional information is available in the PFP 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.