Are you having a hard time paying your student loans? Do not default, you have options!
Learn how to postpone or delay your student loan payments!
FORBEARANCE VS DEFERMENT ON STUDENT LOANS
If you have a student loan and are having a hard time making the payments, then you’ve probably heard the words deferment and forbearance thrown around quite frequently and you probably aren’t 100% sure what the difference is (unless you were a wordsmith/geek and knew what forbearance meant).
Let’s try to define each one in ways that are easy to understand shall we?
Forbearance – a refraining from the enforcement of something (as a debt, right, or obligation) that is due
Deferment – the act of delaying or postponing
So, how does this affect you, a student loan holder?
In both cases, you will no longer be required to make your regularly scheduled student payments.
With a forbearance, the interest accrual process still continues, you simply aren’t required to make any additional payments. As interest accrues, you may decide to pay that off or not, that option is left up to you. Any unpaid interest that accrues and isn’t paid off within the period of forbearance is capitalized (made part of the principal).
With a deferment, your loan is frozen in time – interest doesn’t accrue and you aren’t required to make any payments.
How do you get a deferment instead of a forbearance?
Usually a student loan servicer will grant a deferment if you are enrolled in classes at least part-time, defined by the institution you’re currently attending. They do not have their own universal definition of part-time, they rely on the university or college to make that determination.
A forbearance is usually granted on request and with proof of some sort of reason. Your student loan servicer will have a forbearance process and you will simply have to follow that process, which will include an application
Under certain circumstances, you can receive a deferment or forbearance that allows you to temporarily postpone or reduce your federal student loan payments. Postponing or reducing your payments may help you avoid default
*****You MUST continue making payments on your student loan until you have been notified that your request for deferment or forbearance has been granted. If you stop paying and your deferment or forbearance is not approved, you will become delinquent and you may default on your loan.******
For more definition of important terms please visit our list of student loan terms A-Z