Credible takeaways
- Deferment and forbearance both put your student loan payments on hold during a temporary financial setback or other qualifying situation.
- Deferment is usually best if your situation qualifies for it or you have subsidized federal loans that won’t accrue interest during the payment pause.
- Forbearance is usually best if you don’t qualify for deferment but still need temporary relief due to financial or personal challenges.
If you're a student loan borrower struggling with a short-term financial hiccup or a change in circumstance, deferment and forbearance can offer temporary relief by pausing or reducing your payments while keeping your loans in good standing. The option you choose will depend on your circumstances and eligibility, although neither is the best solution for a long-term financial change.
Here's what to know about deferment vs. forbearance for student loans and how to decide which option is right for you.
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What is student loan deferment?
Student loan deferment allows you to temporarily pause your student loan payments to cope with a short-term financial challenge, such as unemployment, cancer treatment, or going back to college. The U.S. Department of Education has outlined eight eligible scenarios for federal student loans, each of which requires a specific application. You can find these applications on the Federal Student Aid website, and you'll need to send your completed form to your loan servicer.
What is student loan forbearance?
Forbearance allows you to pause payments or make smaller payments for a defined period, but offers more latitude if your situation doesn't fit the eligibility guidelines for a forbearance on your private student loans. Generally, borrowers must request a forbearance from their federal servicer, which then reviews the individual situation.
Private lenders may offer forbearance, but as with deferment, you'll need to inquire about terms.
Editor insight: “I recommend contacting your lender as early as possible if you're considering deferment. Each lender sets its own rules, which can vary widely from one to another. Some may not offer it at all.”
— Richard Richtmyer, Senior Student Loans Editor, Credible
Key differences between deferment and forbearance
Forbearance and deferment changes starting in 2027
Federal student loan deferment and forbearance rules are set to change starting July 1, 2027. Here’s what borrowers should know:
- Economic hardship and unemployment deferment will end: Federal student loans disbursed on or after July 1, 2027, will no longer qualify for these deferments. If your loans were disbursed before that date, you can still use these deferment options under current rules.
- Forbearance will become more limited: Starting July 1, 2027, new federal student loans will only be eligible for up to 9 months of forbearance during any 2-year period. Under current rules, borrowers can typically receive forbearance for up to 12 months at a time, with a cumulative limit of 3 years.
When to choose deferment vs. forbearance
If you have federal subsidized loans, deferment is usually your best option as long as your situation qualifies, so explore this pathway first.
However, you may not have a choice about which option to use.
“Borrowers initiate the process and make requests from their loan servicers for specific deferments or forbearances, but they don't necessarily always receive what they requested,” says Stacey MacPhetres, senior director of education finance for EdAssist by Bright Horizons.
If your situation doesn't qualify for deferment, explore forbearance.
“It can be a good option for those who don't qualify for deferment but face temporary financial challenges,” MacPhetres says. Borrowers should understand the differences so they can provide the appropriate documentation for the type of loan pause they're requesting.
If you opt for pausing payments, don't lose track of your loans and when they'll come due.
“If you don't have the capacity, find someone you trust to help you stay on top of your bills, especially if you're dealing with a health issue,” says Deanna O'Neal, a financial adviser at Vanderbilt Financial Group.
Pros and cons of deferment and forbearance
Pausing your student loan payments through deferment or forbearance has benefits and downsides to consider.
Pros
- Offers temporary payment relief
- Helps avoid delinquency and default
- Protects your credit
Cons
- Interest may continue accruing
- Delays your loan payoff
- May pause progress toward forgiveness
Details on the pros:
- Offers temporary payment relief: Deferment and forbearance can give you short-term financial breathing room if you’re struggling to afford your monthly payments.
- Helps avoid delinquency and default: Pausing your payments can help you avoid missed payments, collections, wage garnishment, and other consequences of default.
- Protects your credit: Staying out of delinquency can help protect your credit score and make it easier to qualify for credit in the future.
Details on the cons:
- Interest may continue growing: Interest accrues during most deferment and forbearance periods, which can increase your total loan balance and overall repayment costs.
- Delays loan payoff: Pausing payments means it may take longer to become debt-free.
- May pause forgiveness progress: Months spent in deferment or forbearance generally don’t count toward Public Service Loan Forgiveness (PSLF) or other forgiveness programs.
Alternatives to deferment and forbearance
Deferment and forbearance may not always be the right option for you. Consider these alternatives:
Income-driven repayment plans
An income-driven repayment (IDR) plan is usually a better option than deferment or forbearance.
“If your income has drastically changed, it's vital to apply for that income-driven repayment plan,” O'Neal says.
IDR plans lower your monthly payment based on your income and family size. Unlike deferment and forbearance, IDR plans also allow you to continue making progress toward forgiveness programs like PSLF.
Remember that federal repayment plans are changing starting in July 2026. Borrowers with federal loans disbursed before July 1, 2026 can continue switching between existing IDR plans until July 1, 2028. After that, borrowers enrolled in PAYE or ICR must switch to IBR, the Standard Repayment Plan, or the new Repayment Assistance Plan (RAP), or they’ll be automatically moved into RAP.
Student loan refinancing
You may be able to reduce your interest rate or monthly payment by refinancing with a private lender. However, you'll lose federal protections on federal student loans, such as access to income-driven repayment plans and subsidized interest on Direct Subsidized Loans.
Loan forgiveness
Forgiveness is available for certain careers and situations, such as teaching in a low-income area or working for the government or a qualifying not-for-profit organization. It's worth exploring the available forgiveness options to see if you qualify.
Negotiate your other bills
Instead of pausing student loans and racking up interest, try negotiating with your other lenders to pause or reduce other bills, including your mortgage, credit card, or utilities.
“Many lenders are willing to negotiate if you let them know about your situation,” says O'Neal.
Keep in mind that recent court actions have affected borrowers already enrolled in income-driven repayment plans or pursuing student loan forgiveness.
FAQ
What’s the main difference between deferment and forbearance?
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