Student-loan deferment can temporarily pause required payments when a borrower qualifies for specific circumstances, such as returning to school or serving on active military duty.
A pause does not always mean the loan stops growing.
Interest generally does not accrue during an approved deferment on certain subsidized federal loans. However, borrowers usually remain responsible for interest on unsubsidized loans.
When unpaid interest is added to the loan balance, future interest may be calculated on a larger amount. This can increase the total cost.
Forbearance is another temporary-payment option, but interest generally continues accumulating. Ask the servicer to explain how much interest may build during the requested period.
Continue making payments until the servicer confirms approval. Assuming that a request was accepted can cause missed payments and possible credit damage.
Private student loans follow the individual contract. A private lender may offer deferment or forbearance, but the rules may be less flexible than federal options.
Before pausing payments, ask whether an income-based repayment option could provide a more sustainable monthly amount. Federal repayment programs and eligibility requirements can change, so verify information through StudentAid.gov.
