2808.01.05  DEFERMENT

References:  34 C.F.R. 674.34(a), 674.35; NACUBO/SLCP pp. 43-45; NASFAA 
Encyclopedia 5.8.4.

Deferment refers to periods during which no principal repayments are due 
and/or no interest accrues on the loan.  Provisions for deferment vary 
substantially for Defense/Direct Loans issued on or before September 30, 1980 
(3 percent interest), and Direct Loans issued October 1, 1980, through 
September 30, 1981 (4 percent interest), or October 1, 1981, or later (5 percent 
interest).