Also, you are liable for expenses incurred in collecting the loan. If you decide to return to school, you're not entitled to receive any more federal student aid. The U.S. Department of Education may ask the Internal Revenue Service to withhold your income tax refund, and apply it toward the amount you owe. YES 5 1. For PLUS Loans and unsubsidized student loans, only principal is deferred.
Interest continues to accrue.
Direct Loan borrowers who have outstanding balances on FFEL Loans disbursed prior to July 1993 will be eligible for additional deferments 3.