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Student loan deferment and forbearance

postponing payments on student loans

Forms, Documents, Articles

Supplemental Reading 

3 lies about student loans you should stop believing

Forbearance_policy_change (3-2017)

Forms

Economic Hardship Deferment

General Forbearance

Graduate Fellowship Deferment

In School Deferment

Military Service andPost-Active Duty Student Deferment

Medical or Dental Mandatory Forbearance

Student Loan Debt Burden Forbearance

Temporary Total Disability Deferment

Unemployment Deferment

Deferment and Forbearance

This module identifies the available options for postponing payments on federal student loans including the distinction between deferrals and forbearance as well as alternatives to postponing repayment.

 

Topic Features

  1. Deferments and forbearances are two different ways to postpone a borrower’s obligation to make payments. Each has different grace periods.
  2. The primary difference between deferment and forbearance is that interest on all loans accrues during forbearance. Subsidized loans enjoy an interest subsidy during deferments.
  3. Some forbearances are “mandatory”, others are “general”.
  4. Income-driven repayment is often a better option than postponing payments using deferment or forbearance.
  5. Evaluate the negative consequences of forbearance.
  6. Understand that loan servicers often overuse forbearance.