Student Loan Deferment vs. Forbearance: What's the Difference?

Borrowers who are temporarily struggling with federal student loan payments may hear two terms repeatedly: deferment and forbearance.

Both can temporarily affect required payments, but they are not the same thing.

What Is Deferment?

Deferment can allow eligible borrowers to temporarily postpone required federal student loan payments under qualifying circumstances.

Eligibility depends on the type of deferment and the borrower's situation.

Interest treatment can also differ depending on the type of federal loan involved.

What Is Forbearance?

Forbearance can also temporarily postpone or reduce required payments in qualifying circumstances.

However, interest generally continues to accrue during many types of forbearance.

This means a temporary payment pause can have longer-term consequences for the amount owed.

Temporary Relief vs. Long-Term Repayment

Forbearance or deferment may make sense in certain circumstances, but borrowers should distinguish between a temporary financial problem and a monthly payment that is fundamentally unaffordable.

If the underlying issue is the repayment amount itself, evaluating a longer-term repayment strategy may be more appropriate.

Smart Loan Aid helps borrowers understand the differences among available federal student loan options and how they may fit their circumstances.

Struggling With Your Payments?

Contact Smart Loan Aid to better understand the federal student loan options that may be available.