Deferment and Forbearance Options

What is a deferment?

A deferment is a period of time during repayment in which the borrower, upon meeting certain conditions, is not required to make payments of loan principal. (For Subsidized Stafford Loan borrowers, the government pays the interest during authorized periods of deferment. For Unsubsidized Stafford Loan borrowers, the borrower is responsible to pay the interest which accrues during authorized periods of deferment.)

What is a forbearance?

A forbearance is a period of time during which the borrower is permitted to temporarily cease making payments or reduce the amount of the payments. The borrower is liable for the interest that accrues on the loan during the forbearance period. Some forbearances are entitlements for eligible borrowers; others are granted at the discretion of the lender.

Deferment and Forbearance forms