When a student loan payment becomes unmanageable, two federal tools can pause it. They look identical on a statement, but the deferment vs forbearance distinction decides whether interest keeps building. This guide is educational only — your servicer confirms what applies to your loans.
What deferment is and who qualifies
Deferment postpones payments for a specific, defined reason in federal rules. You must fit a category and document it:
- In-school, while enrolled at least half-time; usually applied automatically.
- Unemployment, while seeking full-time work or receiving benefits.
- Economic hardship, tied to income tests or certain public assistance.
- Military service and post-active-duty deferments.
Each has its own criteria and maximum duration; the current list is on StudentAid.gov.
What forbearance is and how it differs
Forbearance also pauses payments, but it is broader and often discretionary — a servicer may grant it for temporary financial difficulty, medical expenses, or a job change fitting no deferment category. Federal rules also provide mandatory forbearance in defined situations — certain medical residencies, National Guard duty, or a payment high relative to income — which the servicer must grant.
The practical difference: deferment means fitting a category; forbearance is the wider net and usually costs more in interest.
How interest accrues in each case
- Subsidized loans in deferment: the U.S. Department of Education generally pays the interest, so the balance does not grow.
- Unsubsidized and PLUS loans in deferment: interest accrues and is yours.
- All loans in forbearance: interest accrues on every type, including subsidized.
Unpaid interest from a pause is often capitalized — added to principal — when it ends, so you pay interest on interest. See student loan interest and capitalization explained.
Time limits and how to request a pause
Deferment categories carry maximum periods, and general forbearance has a cumulative cap. To request either:
- Contact your servicer. The request is free; no third party needs to file it.
- Ask which categories your loans qualify for, get the dates in writing, and keep paying until confirmation arrives.
Private loans sit outside these federal rules; company hardship policies are discretionary. See the federal and private student loan comparison.
Alternatives before pausing payments
Pausing is not always cheapest. Ask about income-driven repayment, which can produce a much lower — sometimes zero — payment that still counts as repayment; see how income-driven repayment plans work. On a forgiveness track, most forbearance months do not count while IDR months often do.
Compare your wider options
Explore finance categories or browse finance companies to see what is advertised.
Frequently asked questions
Does interest accrue during deferment or forbearance?
During forbearance, interest accrues on all federal loan types. During deferment, the Department of Education generally pays it on Direct Subsidized Loans, while it accrues on unsubsidized and PLUS loans. Unpaid interest is often capitalized into principal when the pause ends, raising future costs.
Which is better, deferment or forbearance?
Deferment is usually preferable when you qualify, because subsidized loans do not accrue interest during it. Forbearance is broader and easier to obtain but costs more. For many borrowers an income-driven repayment plan is a better long-term answer, since it counts as active repayment.
How do I apply to pause my student loan payments?
Contact your loan servicer and ask which deferment or forbearance categories your loans qualify for. Applications are free, and federal requests go through your servicer or StudentAid.gov. Keep paying until you receive written confirmation, and ask what happens to accrued interest afterward.
Disclaimer: GoFunding.Shop is an advertising marketplace, not a lender, bank, broker, credit-repair company, or financial advisor. We do not approve applications, set rates, or guarantee funding. Always confirm the full terms — APR, fees, and repayment schedule — directly with the advertising company before you apply.