Student Loan Deferment vs. Forbearance: What's the Difference?
Falling behind on student loan payments doesn’t have to mean default — there are formal ways to pause payments, but the two most common ones work differently under the hood, especially when it comes to interest.
The short answer
Deferment and forbearance both let a borrower temporarily stop or reduce federal student loan payments, but the key difference is interest: with deferment on certain loan types, interest may not accrue during the pause, while forbearance almost always leaves the borrower responsible for all interest that builds up, regardless of loan type. Deferment also has stricter eligibility rules tied to specific situations, while forbearance is generally easier to qualify for and more flexible.
Who typically qualifies for a deferment
Deferment is usually reserved for defined circumstances — things like returning to school at least half-time, unemployment, economic hardship, or active-duty military service. Because it’s tied to a specific, verifiable situation, applying for deferment usually means providing documentation that proves eligibility.
Who typically qualifies for a forbearance
Forbearance casts a wider net. Loan servicers often have more discretion to grant it, sometimes for reasons as general as short-term financial difficulty that doesn’t fit neatly into a deferment category. There are generally two types: discretionary, where the servicer decides case-by-case, and mandatory, where a servicer must grant it once certain conditions are met, such as serving in a medical or dental residency. Because the bar for qualifying is lower, forbearance is often the fallback option when a borrower’s situation doesn’t cleanly match one of the defined deferment categories, even if it ends up costing more in accrued interest over time.
Why the interest treatment matters most
This is the detail that changes the long-term cost the most. Loans considered subsidized may not accrue interest during a qualifying deferment, since subsidized versus unsubsidized status affects who covers interest during certain pauses. Unsubsidized loans, on the other hand, generally accrue interest during both deferment and forbearance — that interest doesn’t vanish, and if unpaid, it’s often added to the principal balance once payments resume, a process that can quietly increase the total amount owed.
How the two affect a repayment plan
Because payments are paused rather than forgiven, both options only delay the underlying obligation. Someone weighing either against an income-driven repayment plan is really comparing a temporary full pause against a longer-term, adjusted monthly payment — the right tool depends on whether the disruption is temporary or ongoing. A long forbearance period, even though it avoids delinquency, can add meaningfully to the total interest paid over the life of the loan compared with staying in a reduced payment plan instead.
Requesting either one
Neither pause happens automatically — a borrower generally has to contact the loan servicer, confirm eligibility, and submit any required paperwork before payments stop. Skipping this step and simply not paying can be treated as a missed loan payment rather than an approved pause, with different consequences for credit and fees. It’s worth confirming in writing that a request has been approved and asking exactly how interest will be handled before assuming payments are on hold.
The takeaway
Deferment and forbearance both offer breathing room, but they aren’t identical, and the difference in how interest accrues can matter more than which one is easier to get. Understanding which loans qualify for interest coverage, and for how long, helps make the pause a genuine bridge rather than a more expensive detour later on. Before requesting either one, it’s worth asking the servicer directly how much interest will build up over the pause and whether that interest will be added to the balance once regular payments resume, since that single answer often matters more than the label on the request form.