Student Loans: Choosing Forbearance or Deferment

Choosing between a deferment or a forbearance on a student loan can be difficult for many borrowers. Both of these options can provide you with some help during tough financial times, but you will need to decide between one or the other.

What's the Difference?

Before you can make a decision between a forbearance or deferment, you need to make sure that you understand the difference. With a forbearance, you are simply not going to be making your payments for a specified amount of time. During this forbearance, the interest is still going to keep accumulating on your loan.

With a deferment, you will also be able to stop payments on your loan for a certain period. However, with this method, the interest on your loan does not accrue.

Qualifications

You will also want to find out which options you are eligible for. Traditionally, it is very easy to get a forbearance on your loan. With a deferment, it is typically more difficult to get approved. You have to have very special circumstances and be in serious financial trouble in order to qualify for a deferment. Contact your lender in order to determine which option you are eligible for and then look at your current situation to decide which one is best for you.


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