The following scenarios should cover how to handle your FFEL student loans if you are called to active duty due to a military mobilization and need to withdraw from school. We urge you to contact your school, lender, or guarantor where and when appropriate.

Withdraw from School

To withdraw, contact your school. This can be done by phone. The school may provide a full refund to you or provide a credit to be used toward the classes you take when you return. When you return, the school will work with you to get you re-enrolled in your program. For those of you who took out student loans, contact your lender. They will maintain your loans in an “in-school” status for up to three years, while you are on active duty.

Loans that are in "Grace Period"

If your loans are in grace period, contact your lender. The grace period for your student loan begins the day after you are no longer enrolled in school at least half time. You typically receive a 6-month grace period. Your grace period can be extended for up to three years during the time you are on active duty, up until the time you re-enroll in classes.

Loans in Repayment

      • Forbearance - You or a member of your family should contact your lender. You are eligible for an initial 15-month forbearance due to a military mobilization. During a forbearance period, no payments need to be made on your student loan. Interest that accrues on your loan during this period will be capitalized (added to the principal of the loan) unless you make arrangements with your lender to make interest only payments.
      • Deferment - All borrowers who serve on active duty are eligible for a military deferment. If you qualify for the military deferment, the government will pay interest accruing on your subsidized loan. You or a member of your family should contact your lender.

Loans in Default

You or a member of your family should contact your guaranty agency. Collection activities will cease during your active duty service.

If you have questions regarding this section, contact the Office of Counsel and Regulatory Compliance by phone: 1-888-NYSHESC (1-888-697-4372); or by e-mail: militarycorner@hesc.org