 TITLE: Do Deferred Payments Affect Credit? CONTENT: How Does Deferring a Payment Work?\n----------------------------------\nWhen you request a loan deferment and your lender agrees to the arrangement, you're allowed to temporarily stop making payments on the loan. You don't need to worry about late payment fees or your loan servicer reporting missed payments to the credit bureaus.\nGenerally, you'll need to apply if you want to put your loan into deferment. The process can vary depending on the type of loan you have and which creditor or loan servicer you send your payments to each month.\n*   If you have a federal student loan, you can submit your request to your loan servicer. You can review the eligibility requirements for loan deferment or forbearance (a similar option that lets you temporarily stop making payments) on the Department of Education's website. Your loans may automatically be put into deferment if you enroll in an eligible school with at least a half-time course load.\n*   With an auto loan, the lender may refer to the arrangement as a loan extension or postponement. Each lender will have different criteria you must meet before they grant an extension. For example, you may need to show that you're requesting the extension due to a temporary setback, such as a medical emergency.\n*   If you're having trouble with mortgage payments, you can contact your mortgage servicer to discuss your options. One option may be able to place your loan into forbearance and temporarily stop making payments or make smaller payments. You can get free assistance from a Department of Housing and Urban Development (HUD) counselor who can help explain your options.\nWhether it's called deferment, loan extension, postponement or forbearance, continue making your payments until you're certain that your lender or loan servicer has approved your application and is allowing you to stop making payments.\nAlso, remember that these arrangements are temporary and you may need to reapply if you want to keep postponing payments. END