If you’re having trouble making your student loan payments, deferment and forbearance are two options that can temporarily pause or reduce what you owe each month. They can provide short-term relief, but they work differently and come with important trade-offs.
This article explains what deferment and forbearance are, how they differ, and when they help or hurt in the long run.
1. What Deferment And Forbearance Are (In Plain Language)
Both deferment and forbearance are ways to temporarily stop or reduce student loan payments when you’re facing financial difficulty.
They are not forgiveness, and they do not make your loan disappear. Instead, they pause repayment for a limited time while the loan remains active.
The key difference is how interest is handled and when each option is typically used.
2. What Student Loan Deferment Is
Deferment allows you to pause payments for a specific reason recognized by your loan program.
Common deferment reasons include:
- Enrollment in school at least half-time
- Unemployment or economic hardship
- Certain military service or public service situations
For some federal loans, interest may not accrue during deferment. This can apply to certain subsidized loans, where the government covers the interest during the deferment period.
Because of this, deferment is usually the less costly option when it’s available.
3. What Student Loan Forbearance Is
Forbearance also pauses or reduces payments, but it is generally easier to qualify for than deferment.
Forbearance is often used when:
- You don’t qualify for deferment
- You need immediate, short-term relief
- Paperwork for other options isn’t ready yet
However, interest usually continues to accrue on all loan types during forbearance. That interest can add up quickly, especially if forbearance lasts several months.
This is why forbearance tends to be more expensive over time.
4. How Interest Works During These Periods
Interest treatment is the most important difference between deferment and forbearance.
With deferment:
- Some federal loans may not accrue interest
- Your balance may stay the same during the pause
With forbearance:
- Interest typically accrues on all loans
- Unpaid interest may be added to your balance later
When interest is added to your balance, future interest is calculated on a higher amount. This can increase the total cost of the loan even if payments are paused.
The Federal Student Aid website provides a full overview of both options, including how interest is handled under each:
https://studentaid.gov/manage-loans/lower-payments/get-temporary-relief
5. When Deferment Or Forbearance Can Be Helpful
These options can help in situations like:
- Temporary job loss
- Medical issues
- Short-term financial disruption
- Transition periods between school and work
Used briefly and intentionally, they can prevent missed payments, delinquency, or default.
The key is that they are bridges, not solutions.
6. When Deferment And Forbearance Become Risky
Problems arise when deferment or forbearance is used repeatedly or for long periods without a plan.
They can become risky if:
- Interest keeps growing faster than you can repay
- You rely on them instead of choosing a sustainable repayment plan
- You don’t realize how much the balance is increasing
Pausing payments can feel like relief, but the loan is still moving in the background.
7. Switching From Deferment Or Forbearance To Income-Driven Repayment
In many cases, yes — you can switch from deferment or forbearance to an income-driven repayment (IDR) plan.
For federal student loans, deferment and forbearance are temporary pauses. When they end, you generally return to repayment and can choose a different plan, including an IDR plan, as long as you meet eligibility requirements.
Switching to IDR can help because:
- Payments are based on your income, not just your balance
- You remain in active repayment instead of pausing the loan
- Monthly payments may be very low if your income is limited
Some borrowers use deferment or forbearance as a short-term bridge while they apply for an IDR plan or gather income documentation. Once approved, the IDR plan replaces the pause with an ongoing payment structure that may be easier to maintain.
It’s important to understand that interest that accrued during deferment or forbearance does not disappear when you switch plans. Depending on the loan and program rules, that interest may remain outstanding or be added to your balance.
For private student loans, the ability to switch into an income-based plan depends entirely on the lender. Most private loans do not offer true IDR plans, though some may offer temporary hardship options.
The takeaway is that deferment and forbearance are temporary tools, while income-driven repayment is often a longer-term strategy when financial difficulty continues.
8. Federal Vs. Private Loan Rules
Federal student loans have clear rules for deferment and forbearance, including defined eligibility and limits.
Private student loans vary widely. Some lenders offer hardship options, but they are not standardized and may be discretionary.
This makes it especially important to confirm whether your loans are federal or private before choosing a path forward. You can review federal deferment eligibility and types in detail here:
https://studentaid.gov/manage-loans/lower-payments/get-temporary-relief/deferment
9. The Big Picture Takeaway
Deferment and forbearance can provide breathing room when life interferes with repayment.
Deferment is usually the better option when available because it can limit interest growth. Forbearance is more flexible, but often more costly over time.
Used carefully, these tools can help you avoid immediate trouble. Used repeatedly without a plan, they can quietly increase the total cost of your student loans.