Understanding Deferments and Forbearances

Deferments and forbearances are both ways that you can postpone payments on a student loan. Different loans have different types of deferment or forbearance options available. Not all loans have deferment options, but most loans offer some type of forbearance.

As a general rule, you should always apply for a deferment before you apply for forbearance. Deferments are generally cheaper than forbearances.

You must qualify for a deferment or forbearance, the lender is not obligated to grant the deferment or forbearance. You apply for a deferment or forbearance by contacting the servicer of your loan.

Deferment

deferments are not automatic, you must apply and qualify on an annual basis
subsidized loans do not accrue interest during deferment
interest accrues for unsubsidized loans
request deferment from servicer or download forms from servicer website
completing forms correctly is crucial to accurate processing

Forbearance

you must apply for forbearance
use only after all eligible deferment time is exhausted
allows you to delay your payments or reduce your payments for a designated period of time
interest accrues and capitalizes on all loans
does not adversely affect credit
forbearance options vary and are offered at the discretion of the servicer

Contact the Financial Aid Office: financial.aid@rosalindfranklin.edu (847) 578-3217