Deferment vs. Forbearance: What Each Option Does
Deferment and forbearance both let you pause required student loan payments for a period, but they are not interchangeable. A deferment is a temporary postponement that may be available through specific categories, such as returning to school or facing certain economic conditions. Forbearance is a broader temporary relief option that a servicer may grant when you do not qualify for a deferment or need a different type of pause.
The distinction matters because interest treatment can differ. On some federal loans, interest does not accrue during a deferment, while interest usually continues to accrue during forbearance. Private loan contracts set their own rules, so read your promissory note and servicer materials carefully. The federal student loan types and terms page explains how loan type affects deferment and forbearance benefits.
Neither option erases what you owe. They change the due date and may change the total cost. Before requesting either, ask how the pause affects interest capitalization, your repayment term, and any forgiveness or income-driven repayment timeline. The CFPB student loan guide provides a plain-language starting point for these questions.
Federal Student Loan Deferment Options
Federal student loans have defined deferment categories. Common examples include in-school deferment, economic hardship deferment, unemployment deferment, military service deferment, and certain cancer treatment deferments. Eligibility depends on the loan type, the date you borrowed, and your circumstances. The U.S. Department of Education publishes the categories and paperwork requirements.
For subsidized loans, the government may pay interest during a deferment. For unsubsidized loans, interest generally continues to accrue, and unpaid interest may be capitalized when the deferment ends. That can increase your principal balance. The subsidized vs. unsubsidized student loans guide explains why this difference matters.
If you have a Direct Consolidation Loan, only the portion that came from eligible subsidized loans may receive subsidized deferment benefits. Parent PLUS loans generally have limited deferment options. If you are unsure what you have, log in to your federal account or ask your servicer for a loan-by-loan breakdown before you apply.
Private Student Loan Deferment and Hardship Options
Private student loans are governed by your promissory note and state law, not by federal student loan deferment rules. Some private lenders offer in-school deferment, residency deferment, unemployment forbearance, or hardship forbearance. Others do not. You must ask your servicer what is available for your specific loan.
Because private loan relief is contractual, the servicer can generally deny a request unless your agreement or a temporary program requires it. If you are struggling, explain your situation in writing and ask for all options: temporary forbearance, a reduced payment plan, an interest-only period, or a modified repayment schedule. Keep copies of every request and response.
Private student loans are also subject to federal disclosure rules. The Truth in Lending Act and Regulation Z require certain disclosures before you become obligated on a private education loan, and those documents can help you identify deferment or forbearance terms. If you are comparing federal and private options, start with the federal vs. private student loans guide.
How to Request a Deferment: Step by Step
Use a documented process. Verbal promises are hard to prove, and deadlines can pass while you wait. The steps below apply to most servicers, though federal and private loans have different forms and eligibility rules.
- Identify your loan type and servicer. Log in to your federal student aid account or review private loan statements. Confirm whether each loan is federal or private and who collects payment.
- Review eligibility and interest rules. Read your promissory note and the servicer's deferment or forbearance page. For federal loans, check the official loan types and terms.
- Gather supporting documents. You may need enrollment verification, an unemployment certification, income information, or a written hardship statement. Send only what the servicer requests.
- Submit the request through the servicer's official channel. Use the online account, secure message, or mailing address shown on your statement. Avoid informal email or social media requests.
- Track confirmation and the new due date. Ask for written confirmation that the deferment was approved and when payments resume. Check your next statement to confirm no payment is due.
- Set a reminder before the deferment ends. Plan for the first payment after the pause so you do not fall behind. If you cannot pay, ask about income-driven repayment or other options before the deadline.
If your request is denied, ask for the reason in writing and for any alternative relief. The CFPB Ask CFPB library can help you understand servicer obligations and common student loan questions.
What Happens to Interest, Credit, and Repayment
A deferment does not necessarily stop interest. On many private loans and unsubsidized federal loans, interest continues to accrue. When the deferment ends, unpaid interest may be capitalized, meaning it is added to the principal balance. That can raise future monthly payments and total repayment cost. Ask your servicer whether capitalization will occur and when.
Credit reporting also requires attention. A deferment that is properly approved usually keeps the loan in a current status, but late payments before approval can be reported. The CFPB credit reports and scores guide explains how the Fair Credit Reporting Act governs credit information and your dispute rights. Review your reports through the credit report resources and check that the deferment status is reported correctly.
Repayment timelines can also shift. For federal loans, deferment may affect progress toward income-driven repayment forgiveness because qualifying payments generally require a payment that is due. The income-driven repayment guide explains how payment counts work. If you are pursuing student loan forgiveness programs, confirm whether your deferment period counts before you rely on it.
Alternatives If You Do Not Qualify for Deferment
Deferment is not the only way to manage a payment you cannot afford. For federal loans, income-driven repayment can lower monthly payments based on your income and family size, and it may count toward forgiveness. The Department of Education explains the available repayment plans and how to apply.
For private loans, ask about temporary hardship programs, extended repayment, or a modified payment schedule. Refinancing is another possibility, but it replaces your current loan with a new one and may remove federal benefits if you refinance federal loans. The student loan refinancing guide walks through the tradeoffs.
Before borrowing more or using a high-cost product, compare all options. Personal loans, credit cards, and payday alternatives can create new risks. The FTC credit and loans resources can help you evaluate costs and protections.
Mistakes and Scams to Avoid
Do not simply stop paying and assume a deferment will be applied retroactively. Many servicers require an approved request before the due date, and missed payments can lead to delinquency, default, collection costs, and credit damage. The CFPB debt collection guide explains what can happen when a loan becomes past due.
Be cautious with companies that promise immediate loan cancellation, forgiveness, or a government deferment for an upfront fee. The FTC debt relief resources warn that legitimate help rarely requires you to pay a third party for access to federal servicer forms. You can contact your servicer directly and use official government websites.
Keep your contact information current and open every notice. If you move or change email addresses, update your servicer so you receive deferment deadlines and repayment notices. If you cannot resolve a problem, you can submit a complaint through the CFPB Ask CFPB or request help from your loan holder. Staying proactive is usually less expensive than reacting after a missed payment.