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Start with deferment if you can document a qualifying circumstance. A deferment can stop required payments and, for some federal loan types, prevent interest from accruing. If you do not qualify, forbearance may stop payments or lower them temporarily, but interest accrues on every loan type during forbearance. General forbearance is also discretionary: your loan holder decides whether to approve it and how long it lasts.
Before requesting either option, compare an income-driven repayment (IDR) plan and ask how the pause would affect your forgiveness or discharge goal. The right choice depends on your loan program, the reason for the hardship, the documentation you can provide, and the date payments would resume.
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At a glance
| Name | Best for | Key distinction | Checked |
|---|---|---|---|
| Deferment | A borrower who meets a specific qualifying condition, such as eligible schooling, unemployment, economic hardship, military service or cancer treatment | Interest may be subsidized for some loan types; unsubsidized loans continue accruing interest | Nov 2026 |
| Forbearance | A temporary payment problem that does not fit a deferment, or a borrower who needs a discretionary payment pause or reduction | Interest accrues on all loan types; general approval and duration are up to the loan holder | Nov 2026 |
What is the practical difference between deferment and forbearance?
Both are temporary relief categories that can suspend scheduled federal student-loan payments, but they are not interchangeable. Deferment is based on a defined eligibility category. Forbearance is a separate program with its own mandatory and discretionary routes.
The most important financial difference is interest. During a deferment, interest does not accrue on some subsidized loan types, while an unsubsidized loan continues to accrue it. During forbearance, interest accrues on every loan type. Unpaid interest remains your responsibility and can increase the amount you ultimately repay.
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| Question | Deferment | Forbearance |
|---|---|---|
| Why can I request it? | You must meet the criteria for a named deferment category and usually provide documentation. | Mandatory forbearance has defined criteria; general forbearance can be requested for a temporary problem but is discretionary. |
| Do payments stop? | Usually, for the approved period. | The loan holder may approve a full pause or a smaller payment, depending on the request and program. |
| Does interest accrue? | It depends on the loan type. Unsubsidized loans accrue interest during deferment. | Yes, on all loan types. |
| Can unpaid interest be added to principal? | Capitalization rules depend on the loan program and the event ending the deferment. | For most loan types, unpaid interest does not capitalize at the end of forbearance; certain FFEL loans not managed by the Department of Education are an exception. |
| Does the period count toward forgiveness? | Often it does not, but the answer depends on the forgiveness or discharge program. | Often it does not, with the same program-specific qualification. |
| When do payments restart? | On the end date shown in the approval notice, unless another status applies. | On the approved end date or earlier if you end the forbearance. |
Could I qualify for a federal student-loan deferment?
Check deferment first when your hardship matches one of Federal Student Aid’s listed circumstances. Meeting the general description is not enough; you must satisfy the detailed criteria for your loan and submit any requested proof.
- Cancer treatment: an eligible borrower receiving qualifying treatment may request this deferment.
- Economic hardship: specific income and benefit tests apply.
- Graduate fellowship: an approved fellowship can qualify when the program’s conditions are met.
- At least half-time enrollment: eligible enrollment generally creates an in-school deferment; schools often report qualifying enrollment automatically, but verify that your account reflects it.
- Qualifying military service: service-related criteria and documentation apply.
- Post-active-duty status: some borrowers leaving qualifying active duty receive a limited deferment.
- Parent PLUS borrower with a student in school: the parent may qualify while the dependent student is enrolled at least half time, subject to the program rules.
- Rehabilitation training: an approved rehabilitation program can support a deferment.
- Unemployment: the borrower must meet the applicable unemployment requirements and provide evidence.
These categories are not a guarantee. Your servicer determines whether your documents and loan type satisfy the rule, and some deferments have maximum periods or renewal requirements.
Important future change: Federal Student Aid says economic-hardship and unemployment deferments will not be available for loans made on or after July 1, 2027. That date applies to the loan cohort, not simply the date you submit a request. Confirm the current rule before relying on either category.
When does interest accrue during deferment?
Interest treatment is loan-specific. Subsidized federal loans may receive an interest benefit during an eligible deferment, while unsubsidized loans continue accruing interest even though payments are paused. Federal Student Aid’s account history or your servicer can identify each loan’s subsidy status.
Federal Student Aid illustrates the cost with a $30,000 unsubsidized balance at 6% for one year: about $1,800 of interest accrues during the deferment. That is the agency’s example, not a personalized estimate. Your balance, rate, daily accrual, payment timing and capitalization rules can produce a different amount.
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You may be allowed to pay accruing interest while you are in deferment. Doing so can prevent the unpaid balance from growing, even if you cannot make the scheduled principal-and-interest payment. Ask your servicer how to target interest-only payments to the correct loan.
When does forbearance make sense?
Forbearance is a fallback when you need short-term relief but do not fit a deferment category, or when a forbearance category specifically matches your situation. A request can involve financial difficulty, medical expenses, a change in employment or another reason acceptable to the servicer.
There are two broad paths:
- General forbearance: you ask for a temporary pause or reduced payment. Approval is optional. The official General Forbearance Request form states: "Your loan holder has sole discretion in whether to grant your general forbearance request, and, if granted, for what period your forbearance will be applied."
- Mandatory forbearance: when you meet a qualifying statutory or program condition, the holder must grant the relief. The required evidence and duration depend on the category.
Do not stop paying merely because you mailed a request. Continue scheduled payments until the servicer confirms approval and gives the effective date, unless it tells you in writing that a different instruction applies.
How expensive can forbearance be?
Interest accrues on all federal loan types during forbearance. If you make no payments, the accrued amount remains owed. For most loan types, Federal Student Aid says unpaid interest does not capitalize automatically when forbearance ends; certain FFEL loans not managed by the Department of Education are an exception. Capitalization means unpaid interest is added to principal, after which future interest is calculated on the higher balance.
Even without immediate capitalization, accrued interest can make repayment more expensive. A borrower can ask for an interest estimate before accepting relief: request the current principal, the interest rate for each loan, the expected end date, the estimated interest through that date and the balance under the applicable capitalization rule.
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Forbearance may permit a smaller payment instead of zero. A reduced payment can limit balance growth and preserve a payment record, but it may not cover all accruing interest. Obtain the amount and schedule in writing.
Which option is better for a temporary hardship?
Use this order of operations:
- Identify every loan. List the type (Direct, FFEL or Parent PLUS), current principal, interest rate, subsidy status and servicer. One account can contain loans with different treatment.
- Match the hardship to a deferment category. If unemployment, school enrollment, military service, rehabilitation, cancer treatment or another listed condition applies, ask for that category and its documentation requirements.
- Estimate the interest cost. Ask what will accrue on each loan and whether any amount may capitalize. Compare that cost with the amount you can pay now.
- Check an IDR plan. An IDR payment may be affordable without stopping the months that matter to your repayment strategy. Request an official payment estimate before choosing a pause.
- Verify forgiveness or discharge consequences. Ask the servicer or program administrator whether the proposed period counts toward your specific program, including Public Service Loan Forgiveness or an IDR discharge. Do not assume that a pause earns qualifying credit.
- Choose forbearance only after checking deferment. If no deferment fits, determine whether mandatory forbearance applies. Otherwise, submit a general request and understand that approval and length are discretionary.
A short, documented deferment is generally the first option to investigate when it provides an interest benefit. Forbearance can still be the appropriate bridge when the hardship is real and immediate, but price the accruing interest and confirm the end date before accepting it.
How do I apply for deferment or forbearance?
Most relief is not automatic. The standard process is to identify the category, complete its form, gather proof and send the package to your federal loan servicer.
Deferment application
- Contact the servicer and name the exact deferment category you believe applies.
- Request the current form and a list of acceptable evidence. Examples can include enrollment certification, unemployment documentation, fellowship records or military orders.
- Complete every borrower and loan field; incomplete forms can delay an effective date.
- Send the form through the servicer’s stated channel and retain a copy, upload receipt or mailing proof.
- Continue payments until written approval says the deferment is active. Confirm the start date, end date, renewal requirements and interest treatment for each loan.
In-school deferment is often reported by an eligible school automatically, but check your account. If enrollment is missing or reported incorrectly, ask the school and servicer to correct it rather than assuming the status is in place.
Forbearance application
- Ask which mandatory or general forbearance category fits your circumstances.
- Complete the category-specific form. A general request can ask to stop payments or make smaller payments.
- Attach documents the holder requires, such as medical, employment or financial evidence.
- Submit the materials and ask when a decision is expected. A submitted request is not the same as an approved status.
- Obtain the approval notice showing the start date, end date, payment amount and interest treatment. Set a calendar reminder several weeks before payments resume.
What should I ask the servicer before signing?
Use a written message or secure-account call and save the response. Ask:
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- Which deferment or forbearance categories are available for each of my loans?
- What exact documents prove eligibility, and must an employer, school or agency complete any section?
- Has my request been approved, or is it still pending? What are the precise effective and end dates?
- Will my payment be zero or reduced? What amount is due if the request is denied?
- How much interest is expected to accrue on each loan during the period?
- Under my loan program, when could unpaid interest capitalize?
- Will I receive a statement while payments are paused, and where will interest be shown?
- Does this period count toward my particular forgiveness or discharge program?
- When and how will billing restart, and can I end the status early?
Ask for a confirmation number and the representative’s name. If the answer conflicts with your promissory note or program guidance, request a written explanation and escalate through the servicer’s complaint process.
How can a pause affect forgiveness or discharge?
Relief periods may not count toward the payment or service requirements for forgiveness. Federal Student Aid cautions that deferment or forbearance can affect options such as Public Service Loan Forgiveness and IDR-plan discharge. The exact result depends on the program, loan type, employment certification and the status applied to your account.
Before accepting relief, ask the relevant program administrator—not only a general customer-service representative—to confirm whether the months count, are excluded, or can be treated under a special rule. Keep copies of qualifying-employment records, annual certifications, approval notices and payment histories.
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If forgiveness is your priority, compare an IDR plan first. An IDR payment can be lower than the standard amount and may preserve qualifying months, while a deferment or forbearance can interrupt them. The lowest monthly bill is not necessarily the lowest total cost or the fastest path to discharge.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What are common mistakes, and how do I recover?
- Assuming approval is automatic: A general forbearance is discretionary. If it is denied, ask whether a mandatory category or IDR plan is available and keep paying under the existing schedule.
- Stopping payment after applying: A pending form does not establish a status. Check the account before the due date and request a temporary payment instruction if the servicer offers one.
- Ignoring unsubsidized interest: A deferment does not make an unsubsidized loan interest-free. Request an accrual estimate and pay interest when feasible.
- Missing the end date: Put the restart date on your calendar and confirm the first bill. A returned payment or delinquency can create additional problems.
- Assuming forgiveness credit: Verify the effect in your specific program. Keep evidence if a qualifying month is later coded incorrectly.
- Overlooking the 2027 rule change: If your economic-hardship or unemployment request concerns a loan made on or after July 1, 2027, ask which replacement relief is available.
If a status was applied incorrectly, contact the servicer promptly, provide the approval documents and request an account review. Ask for a written correction and keep statements showing the disputed dates and payments.
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When should I choose an income-driven repayment plan instead?
An IDR plan deserves a comparison whenever the hardship may last beyond a brief, clearly defined period or when forgiveness matters. It changes the required payment under plan rules rather than placing the account in a nonpayment status. Eligibility, payment formulas and forgiveness treatment vary, so obtain a current estimate from Federal Student Aid or your servicer.
A borrower who can make a small IDR payment may avoid the uncertainty of discretionary forbearance and may preserve progress that a pause would not count. A borrower facing a very short emergency may still prefer a qualifying deferment, especially when an interest subsidy applies. Compare the monthly amount, projected interest, administrative burden and program credit—not just the next due date.
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Bottom line: which relief should you request?
For a documented qualifying hardship, investigate deferment first because some loan types receive an interest benefit. If you do not qualify, forbearance can provide temporary breathing room, but interest accrues on all loan types and general approval is up to the loan holder. Before submitting either request, compare IDR, confirm the effect on forgiveness or discharge, and get the start date, end date and interest rules in writing.
Frequently Asked Questions
Can I request deferment and forbearance at the same time?
You generally choose the status that matches your circumstances, and overlapping statuses can create conflicting effective dates. Ask the servicer which request should remain open and do not assume a second application extends the first approval.
Will deferment or forbearance hurt my credit score?
An approved status is designed to prevent missed payments from being reported as delinquent, but reporting is account-specific. Check your statements and credit reports, and contact the servicer immediately if an approved pause is reported incorrectly.
Can I end a deferment or forbearance early?
Often you can ask the servicer to remove the status early, but the effective date and next bill must be confirmed in writing. Make sure you can afford the resumed payment before requesting an early end.
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The existing payment obligation usually remains in place. Ask for the denial reason, whether another deferment or mandatory-forbearance category applies, and whether an IDR payment or temporary payment arrangement is available.
