What is the difference between a deferment and forbearance?
• A deferment is a temporary period during which no student loan payment is due if requirements are met. Interest payments can be made or, if postponed, the interest is capitalized and added on to the principal. • Forbearance is a period of time, granted at the lender’s discretion, during which no loan payments of principal are required. The borrower must prove that he or she is willing but unable to make payments.
Related Questions
- I recently sent in a deferment/forbearance request to Edfinancial Services. Will my deferment/forbearance automatically be applied on my loan(s) that was transferred to the Department of Education?
- Who do I contact to get more information regarding Loan Repayment, Deferment or Forbearance?
- What is the difference between a deferment and a forbearance on my Federal loans?
