For PLUS loans and unsubsidized student loans, only principal is deferred.
Interest continues to accrue.
2 Direct Loan borrowers who have outstanding balances on FFEL loans disbursed prior to July 1, l993 will be eligible for additional deferments. Applies to loans first disbursed on or after July 1, l993 to borrowers who have no outstanding FFEL Program Loan, SLS Loan, or Consolidation Loan on the date they signed their promissory note. If seven years have not passed, cancellation is possible only if the bankruptcy court rules that repayment would cause undue hardship. Applies to loans first disbursed on or after January 1, l986.