What is Deferment?

When you are in deferment, the Federal Government pays the interest that accrues during the deferment period on subsidized Stafford and Federal Consolidation Loans. You will not be required to make principal payments on your FFELP student loan.

There are 6 different types of deferments you may be eligible:

New Military Deferment
In-School Deferment
Unemployment Deferment
Economic Hardship Deferment
Parental Leave/Working Mother Deferment
Temporary Disability Deferment
Public Deferment

You will need to apply for deferment. The only deferment that does not have limit to the length of time you may remain in deferment, is In-School deferment. All others have up to 3 years at which you may stay out of repayment.

What is Forbearance?

Forbearance is a Temporary Cessation of scheduled payments. This is when a borrower is having serious financial difficulties and they do not qualify for Deferment. Unlike Deferment, Forbearances are not an entitlement. Therefore the lender/servicer grants the Forbearance.

While in Forbearance, the interest is accruing on all the Loans. It may be in your interest to speak with one of Student Loan Consultant before applying for Forbearances.

There are 3 types:

Optional
Mandatory
Administrative

For more information on Deferment or Forbearance and how to apply, contact our Loan Advocates @ (888) 482-4764.