A deferment is a period of time, upon meeting certain qualifications, that you are entitled to not make payments towards your federal and/or private student loans. For federal loans, the Government pays the accrued interest on Subsidized loans during periods of deferment. You are responsible for the accrued interest on Unsubsidized Stafford, SLS, PLUS, Unsubsidized Consolidation, and private student loans.
If you have a TREESM, LEAFSM or EDvestinU® private student loan, you may be eligible for deferment if you meet the eligibility requirements. Alternative Loans for Parents & Students (ALPS) loans are not eligible for deferment.
Forbearance is an agreement between the borrower and the lender/servicer to cease payments or temporarily make smaller payments on your federal and/or private student loan(s) for a period of time. Forbearance can be requested when you are experiencing difficulty in making your monthly payments and do not qualify for a deferment.
IMPORTANT – what you should know about deferments and forbearances:
No matter what type of loan(s) you have, you are responsible for all interest that accrues on your loan(s) while in forbearance or deferment (if applicable). You will continue to receive monthly statements that will show the interest as it accrues on your account. You can choose to make monthly interest payments or make a larger interest-only payment towards the end of your forbearance or deferment. Any unpaid interest at the end of a deferment or forbearance period may be capitalized (added to the principal balance of the loan). Capitalization of interest will increase the total amount you must repay during your loan period and may cause your monthly payment amount to increase.
If you are enrolled in automatic debit, the method that automatically deducts your monthly student loan payment from a checking or savings account you designate, your monthly payments will not be debited while your account is deferment or forbearance (except if you are in a Reduced Payment Forbearance). Please note that periods of deferment or forbearance will result in the loss of any interest rate incentive awarded to you for being enrolled in automatic debit. When the deferment or forbearance ends, you will automatically be placed back on automatic debit (if applicable) and your interest rate incentive will be reinstated unless you request termination of your automatic debit agreement.
Not sure which deferment or forbearance is right for you? The most up-to-date information on all deferment and forbearance information is available by logging into your account.