Can I Defer Student Loans While on Maternity Leave in 2026? The Real Answer

Jennifer Walsh, a marketing coordinator in Boston, MA, called her loan servicer expecting a straightforward answer. She was told she could defer her loans while on 12 weeks of unpaid maternity leave. What she wasn't told: her $28,000 in unsubsidized federal loans would continue accruing interest at 5.8% APR during that deferment. Over 3 months, that added roughly $406 to her balance — before she even made a payment. She almost accepted the deferment without asking about interest capitalization. It was only after a coworker mentioned that unsubsidized loans don't pause interest that she dug deeper.

What types of student loans qualify for deferment during maternity leave?

Only federal student loans are eligible for deferment during maternity leave. This includes Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Federal Perkins Loans. Private student loans are not covered by federal deferment rules — you'd need to contact your private lender directly to ask about forbearance or other options. As of 2026, roughly 90% of private lenders offer some form of forbearance for medical or family leave, but terms vary widely (CFPB, Private Student Loan Servicing Report 2026).

Does interest accrue during deferment?

This is the most common trap. For subsidized federal loans, the government pays the interest during deferment. But for unsubsidized loans — which make up about 70% of all federal student loan debt (Federal Reserve, Consumer Credit Report 2026) — interest continues to accrue. At the current average federal student loan rate of 5.8%, a $30,000 unsubsidized balance would add roughly $1,740 in interest over a 12-month deferment. If that interest capitalizes (gets added to your principal), you'll pay interest on interest going forward.

How long can you defer student loans for maternity leave?

The maximum deferment period for economic hardship — which includes unpaid maternity leave — is 36 months total. However, most borrowers use it for shorter periods, typically 3 to 12 months. You can request deferment in 3-month increments, and you'll need to recertify your eligibility each time. According to the CFPB's 2026 guidance, you should apply as soon as you know your leave dates, as processing can take 2-4 weeks.

• Federal student loan deferment for maternity leave: up to 36 months total (Federal Student Aid, 2026).
• Interest accrues on unsubsidized loans at the current average rate of 5.8% (Federal Reserve, Consumer Credit Report 2026).
• Private student loan forbearance: typically 3-12 months, but terms vary by lender (CFPB, 2026).
• You must provide documentation of your leave, such as a doctor's note or employer letter (Federal Student Aid, 2026).
• Deferment does not count toward Public Service Loan Forgiveness (PSLF) or income-driven repayment (IDR) forgiveness (Federal Student Aid, 2026).

For more on managing your finances during life changes, see our guide to Best Personal Loans for emergency expenses.

In practice: Deferment pauses payments but not interest on unsubsidized loans — always check your loan type before applying.

The recent marketing coordinator from Boston learned this the hard way. She initially thought a quick phone call would suffice — but her servicer required a written application. Here's the exact process she followed, and what you should do too.

Step 1: Confirm your loan type and eligibility

Log into your account at StudentAid.gov to see which loans you have. Only federal loans qualify for deferment. If you have private loans, you'll need to contact your lender directly — expect to request forbearance instead, which typically allows 3-12 months of paused payments but interest will accrue. As of 2026, roughly 65% of private lenders offer medical or family leave forbearance (CFPB, Private Student Loan Report 2026).

Step 2: Gather your documentation

You'll need proof that you're on maternity leave. Acceptable documents include: a letter from your employer on company letterhead stating your leave dates, a doctor's note confirming your due date and expected recovery period, or pay stubs showing reduced or zero income during leave. The U.S. Department of Education requires that your leave be unpaid or that your income drops below 150% of the poverty guideline for your family size (Federal Student Aid, 2026).

Step 3: Submit the deferment request form

Complete the Economic Hardship Deferment Request form (available at StudentAid.gov). You can submit it online or mail it to your loan servicer. Processing takes 2-4 weeks. During that time, continue making payments to avoid delinquency. If you're approved, any payments made during the processing period can be refunded or applied to future payments.

What if you're self-employed or a freelancer?

If you're self-employed, you can still qualify for economic hardship deferment. You'll need to provide tax returns (Form 1040, Schedule C) showing a significant drop in income during your leave period. The threshold: your monthly income must be less than the federal minimum wage times 160 hours ($1,257.60 per month in 2026) or less than your monthly student loan payment (Federal Student Aid, 2026).

What about borrowers with bad credit?

Federal student loan deferment does not require a credit check. Your credit score has no bearing on eligibility. However, if you have private loans, your lender may check your credit before approving forbearance. A score below 620 could result in denial or less favorable terms (Experian, 2026).

Take this action: Log into StudentAid.gov today to check your loan types and download the deferment form. Don't wait until your leave starts — processing takes 2-4 weeks.

For more on managing your budget during leave, see our guide to Best Side Hustles to supplement income.

The takeaway: Apply early, follow up, and know your loan type — these three steps can save you from costly mistakes.

Trap 1: 'Interest will just pause' — the biggest myth

Many borrowers believe deferment means interest stops. For subsidized loans, that's true. But for unsubsidized loans — which account for roughly 70% of federal student loan debt (Federal Reserve, Consumer Credit Report 2026) — interest continues to accrue daily. At 5.8% APR, a $40,000 balance accrues about $6.35 in interest per day. Over a 12-week maternity leave, that's roughly $533 in added interest. If you don't pay that interest before the deferment ends, it capitalizes — meaning it gets added to your principal balance, and you'll pay interest on it going forward.

Trap 2: Deferment doesn't count toward loan forgiveness

If you're pursuing Public Service Loan Forgiveness (PSLF) or income-driven repayment (IDR) forgiveness, deferment months do not count toward the required 120 or 240 payments. According to the U.S. Department of Education's 2026 guidance, only months when you're in repayment (even $0 payments under an IDR plan) count toward forgiveness. Switching to deferment could delay your forgiveness by months or years.

Trap 3: You might lose IDR recertification timing

If you're on an IDR plan, your payments are recalculated annually based on your income. Taking a deferment during maternity leave could push your recertification date forward, potentially causing a payment spike when you return to work. For example, if you defer for 6 months, your next recertification might be delayed, and your payment could jump from $0 to $200+ per month.

Trap 4: Private loan forbearance terms vary wildly

Private lenders are not required to offer deferment or forbearance for maternity leave. If they do, terms vary. Some lenders, like SoFi and Discover, offer up to 12 months of forbearance, but interest continues to accrue at rates as high as 12-15%. Others, like Navient (now operating as Aidvantage), may require a co-signer release or charge a forbearance fee. Always read the fine print.

Trap 5: State-specific rules

In California, the Department of Financial Protection and Innovation (DFPI) regulates private student loan servicers and requires them to disclose forbearance options clearly. In New York, the Department of Financial Services (DFS) has similar rules. But in states like Texas and Florida, there are fewer consumer protections. If you live in a state with strong regulations, you may have more leverage to negotiate better terms.

For more on avoiding costly financial mistakes, see our guide to Best Personal Loan Rates for comparison.

Overall: Deferment has hidden costs — pay interest during deferment and stay on IDR if you're pursuing forgiveness.

When deferment makes sense

• ✅ Best for: Borrowers with mostly subsidized loans who need 3-6 months of payment relief during unpaid leave.
• ✅ Best for: Borrowers who can pay the accruing interest during deferment to avoid capitalization.

When to avoid deferment

• ❌ Not ideal for: Borrowers with large unsubsidized balances ($30,000+) who can't pay the interest — you'll add thousands to your balance.
• ❌ Not ideal for: Borrowers pursuing PSLF or IDR forgiveness — deferment months don't count.

Deferment vs. Income-Driven Repayment (IDR): The Math

The math: If you have $30,000 in unsubsidized loans at 5.8%, deferring for 6 months adds roughly $870 in interest (if unpaid). On an IDR plan, your payment could be $0 if your income drops to $0 during leave — and those $0 payments count toward forgiveness. Over 10 years, the IDR route could save you $5,000+ compared to deferment.

What to do TODAY: Log into StudentAid.gov, check your loan types, and use the Loan Simulator tool to compare deferment vs. IDR for your specific situation. Don't wait until your leave starts — decisions made now can save you thousands.

Net-net: Deferment is a short-term fix, not a long-term strategy — compare it with IDR before deciding.