[Code of Federal Regulations]

[Title 34, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR674.37]



[Page 585]

 

                           TITLE 34--EDUCATION

 

 CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION

 

PART 674_FEDERAL PERKINS LOAN PROGRAM--Table of Contents

 

                        Subpart B_Terms of Loans

 

Sec. 674.37  Deferment of repayment--NDSLs made before October 1, 1980 

and Defense loans.



    (a) A borrower may defer repayment--

    (1) On an NDSL made before October 1, 1980 during the periods 

described in paragraphs (b) through (e) of this section; and

    (2) On a Defense loan, during the periods described in paragraphs 

(b) through (f) of this section.

    (b)(1) A borrower need not repay principal, and interest does not 

accrue, during a period after the commencement or resumption of the 

repayment period on a loan, when the borrower is at least a half-time 

regular student at--

    (i) An institution of higher education; or

    (ii) A comparable institution outside the U.S. approved by the 

Secretary for this purpose.

    (2) The institution of higher education does not need to be 

participating in the Perkins Loan program for the borrower to qualify 

for a deferment.

    (3) If a borrower is attending as at least a half-time regular 

student for a full academic year and intends to enroll as at least half-

time regular student in the next academic year, the borrower is entitled 

to deferment for 12 months.

    (4) If an institution no longer qualifies as an institution of 

higher education, the borrower's deferment ends on the date the 

institution ceases to qualify.

    (c) A borrower need not repay principal, and interest does not 

accrue for a period of up to 3 years during which time the borrower is--

    (1) A member of the U.S. Army, Navy, Air Force, Marines or Coast 

Guard (see Sec. 674.59);

    (2) A Peace Corps volunteer (see Sec. 674.60); or

    (3) A volunteer under the Domestic Volunteer Service Act of 1973 

(ACTION programs) (see Sec. 674.60).

    (d) The institution shall exclude the deferment periods described in 

paragraphs (b), (c), and (e) of this section when determining the 10-

year repayment period.

    (e) An institution may permit the borrower to defer payments of 

principal and interest, but interest shall continue to accrue, if the 

institution determines this is necessary to avoid hardship to the 

borrower (see Sec. 674.33(c)).

    (f) The institution may permit the borrower to defer payment of 

principal and interest, but interest shall continue to accrue, on a 

Defense loan for a total of 3 years after the commencement or resumption 

of the repayment period on a loan, during which he or she is attending 

an institution of higher education as a less-than-half-time regular 

student.



(Approved by the Office of Management and Budget under control number 

1845-0019)



(Authority: 20 U.S.C. 425, 1087dd)



[52 FR 45754, Dec. 1, 1987, as amended at 57 FR 32345, July 21, 1992; 59 

FR 1652, Jan. 12, 1994. Redesignated at 59 FR 61410, Nov. 30, 1994, as 

amended at 62 FR 50848, Sept. 26, 1997; 64 FR 58315, Oct. 28, 1999]