In general, you can defer payment on most school loans while you are enrolled at least half time in another program. In fact, your lender is required to grant you an “In-School Deferment” on federal loans as long as they are notified you are enrolled at least half time.

However, if you have any private loans from another program, you will need to check with your lender to see if you are allowed to defer payment on them while you are enrolled.

To defer payments on a private loan while you are in school, your lender may grant you a Forbearance and may charge you a fee to do this. They may also capitalize interest on your loan(s) during forbearance periods, which will greatly add to the total repayment cost of your loan. If your lender does not allow you to defer payment while you are in graduate business school, you may want to see if you can negotiate a lower payment. You will also want to let your school know that you are required to make payments on your private loans during school, as they may be able to make an adjustment to your total COA.

Your school and lender likely participate in something called the Clearinghouse, which is a national system used by schools and lenders to verify your enrollment—if so, your “In-School Deferment” will be somewhat automatic. However, don’t leave this to chance. You should check with your school and your lender once you are enrolled to be sure your loans have been placed into the “In-School Deferment” status.

Some students, especially those attending school on a part-time basis, may find they have the resources to continue making payments on previous loans while they are getting their b-school degree. Even if these students are able to defer payments during school, they may find they want to occasionally make voluntary payments on their loans. If you are in this position, contact your loan to ensure that not only are you making payments against your most expensive loan (getting the best “bang for the buck”), but also that your loan servicer knows what you are doing.