Deferment and Forbearance

If you are temporarily unable to make payments, then a deferment or forbearance might be the right choice for you.

A deferment allows you to temporarily delay repayment of your student loans for a specified period of time. There are many different situations that would make a person eligible to defer their payments. Some of the most commonly used deferments cover unemployment, enrollment in school, or economic hardship. A forbearance is an option available to people who do not qualify for a deferment.

The big difference between deferment and forbearance is that borrowers with subsidized student loans on deferment have the accrued interest paid for them by the federal government. The borrower is responsible for the interest that accrues on unsubsidized loans on deferment and for the interest that accrues on both subsidized and unsubsidized loans on forbearance. If the interest is not paid, it will be capitalized (added to the principal balance) at the end of the deferment or forbearance period. Capitalization of interest increases the total cost of your loans which may consequently increase your monthly payment amount. Please keep in mind that there are limits on the amount of deferment and forbearance time available to you.

You can use our Form Selector to determine whether a deferment or a forbearance best meets your needs.