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Postpone Payments
Everyone experiences financial difficulty at one time or another. Fortunately, you can usually postpone loan payments under certain circumstances using a deferment or forbearance.
A deferment or forbearance may be the right choice to keep your loan from entering default.
| Deferment | Forbearance | |
|---|---|---|
| What Is It | Deferment is a period of time during which your lender temporarily suspends your regular payments. | Forbearance is a period of time during which your lender temporarily reduces or suspends your regular payments. |
| Reasons to Apply |
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| Who Pays the Interest | Subsidized federal loans—The government pays the daily interest that accrues. All other loan types—You are usually responsible for paying the daily interest that accrues. |
All loans—You are usually responsible for paying the daily interest that accrues. |
Loan programs come with limited amounts of deferment and forbearance time, so use these opportunities wisely.
Helpful Tips
- If you are unable to make the monthly payments on your student loan, call your lender or servicer immediately. Your lender/loan servicer can explain the details about any deferment and forbearance options they offer.
- Even if your monthly payments are suspended, interest may continue to accrue on your loan.
- If you can't afford to pay the interest that is accruing, the interest will be added to the principal balance on the loan (through "capitalization"). Your lender/servicer will do this automatically if you do not contact them.
- Always see if you qualify for a deferment before using a forbearance, since interest continues to accrue during forbearance no matter what type of loan you have.
Supporting Content
Online Resources
Download deferment and forbearance forms online or contact your servicer directly to apply for a deferment or forbearance or to determine eligibility.