What are deferments and forbearance?
While repaying student loans without a break or pause is ideal, circumstances may arise in which you need to postpone or reduce monthly payments. For example, you may become temporarily unemployed or disabled, experience economic hardship, or return to school. When situations like these occur, deferment or forbearance options are available. You may qualify for a federal student loan deferment, a federal student loan forbearance, or a private loan forbearance. Federal Student Loan Deferment A federal student loan deferment is a period of time during which payments are postponed. Deferments usually require documentation. There are different types of deferment for which borrowers can apply, such as in-school deferments or unemployment deferments. Federal Student Loan Forbearance A federal student loan forbearance is an agreement between a borrower and the lender/servicer to temporarily postpone payments, extend the timeframe for making monthly payments, or reduce the amount of monthly pay
