Deferment and Forbearance

FORBEARANCE:

Forbearance is an arrangement to postpone or reduce your monthly payment amount for a limited and specific period during which you are charged interest. If you indicate a temporary inability, but willingness to pay the loan(s), you may ask for or be offered a forbearance. For all Direct Loans, interest that accrues during Forbearance is the responsibility of the borrower. When you re-enter repayment at the end of the forbearance period, any unpaid interest capitalizes *(is added to the principal balance). You can view the Repayment Estimator to get an early look at which plans may be eligible for you. There are several forbearance types. You must apply and qualify for forbearance and the U.S. Department of Education must approve the request in order for forbearance to be in effect. If you are not eligible for forbearance you may still be eligible for a deferment.

DEFERMENT:

A deferment is a temporary suspension of loan payments for specific situations such as re-enrollment in school, unemployment, or economic hardship. You do not have to pay interest on the loan during deferment if you have a subsidized Direct or FFEL, Stafford Loan or a Federal Perkins Loan. If you have an unsubsidized Direct or FFEL Stafford Loan you are responsible for the interest during deferment. If you do not pay the interest as it accrues (accumulates), it will be capitalized (added to the loan principal), and the amount you have to pay in the future will be higher. You have to apply for a deferment to your loan servicer (the organization that handles your loan), and you must continue to make payments until you have been notified that your deferment has been granted. Otherwise, you could become delinquent or go into default. You must be enrolled at an eligible school at least as a halftime student.

Learn more about the Forbearance and Deferment request process