financing your dream

Deferment and Forbearance

Also check what repayment alternatives are included. It may be a struggle to repay your loans. If you don’t have a job when you graduate, deferment and forbearance may help. Both allow you to temporarily suspend payment. How do they differ?

1. During deferment, interest always continues to accrue.
2. During forbearance, interest always continues accruing.
3. During deferment, interest is always waived.

“B” is correct. During deferment, interest on subsidized federal loans is waived, while interest on unsubsidized federal loans continues to accrue. To qualify for deferment, you must be enrolled at least half-time as a student or on active duty in the armed services, be unemployed or suffer other economic hardship, have a temporary disability or be in rehabilitation for a disability.