What's the Difference Between Deferment and Forbearance

What’s the Difference Between Deferment and Forbearance? Important Facts & Details

In this article, we’ll discuss the important topic of: “What’s the Difference Between Deferment and Forbearance?”

Higher scholarships have turned out to be a must-take decision these days given the competition and the tough job markets globally. This leads several students to go for the choice of student loans. Going for the federal student loan option is considered to be in this case due to the benefits that it offers. Though it offers several beneficial features, some students still may not pay back the debt amount on time.

Some students do not think about further studies in such a case, while some brainstorm ways of going back to school while in debt. It is possible to go back to school even when you have not paid off your last debt with the help of different procedures such as deferment and forbearance. 

What’s the Difference Between Deferment and Forbearance?

When a scholar has completed a certain level of schooling but has not paid the student loan, then comes a situation where a crucial decision needs to be made. Some students prefer to complete the payment procedure first and then start their schooling again for further studies. On the other hand, some students prefer going back to school while in debt because they do not wish to break their studies. 

Students who are still in debt or have defaulted on their student loans can have several options to go for in such a case. 

  • If you still have some debt to pay, you can refund your pending debt, along with an additional amount for your studies. 
  • In case of default, you need to correct your status by either paying the amount by taking a private loan. 
  • Also, you can go for options such as deferment to carry on your studies.
  • Similarly, forbearance is another option here. 

Now in the first two options, getting a private student loan is one of the best choices. For the subsequent two possibilities, it is indispensable to comprehend how they work. 

The Duration:

The deferment duration varies as per the deferment type you have opted for from the options. Some may last for about three years, while some may have even further duration or lesser. But in the case of forbearance, the period is just 12 months and not more than that. 

The Qualification:

To get the benefits of deferment, you need to show that you are unemployed or enrolled in a school. For the forbearance option, there are no such qualifications required. You can opt for the possibility of forbearance without showing up any capabilities or proof of your employment. 

The Application:

There are innumerable forms for diverse deferment types. It would help if you talked to your service provider to understand which one to opt for among the options. You need to fill this form and need to attach the required documents for the process. But in the case of forbearance, there is only one standard form for patience. There are also instances when forbearance is also granted through the phone.

The Interest:

One fundamental advantage of deferment is that no extra interest levied on the loan you have in debt. It can be your federal student loans and the Perkins loans for which you can opt for deferment and enjoy interest-free benefits. But when you opt for forbearance, interest is levied on every type of loan you have. 

Apart from knowing what’s the difference between deferment and forbearance, you should also know the resemblances. One noteworthy comparison between the two is that both of them do not have any impact on your credit report. 

How to Return to College with Dodged Student Loans?

If you are already in debt but are paying the installments regularly, you can opt for deferment or forbearance. But how to go back to school with defaulted student loans is the larger query. When you default on the student loan, you may not be entitled for deferment or forbearance. To get the benefits, you need to clear up your default status. Here are some of the ways that you can try out. 

Loan Rehabilitation:

When you apply for loan rehabilitation, you can sincerely claim aid after making the next six months’ payments. 

Loan Consolidation:

With this process, you can get out of the default in 2 to 3 months so that you can claim further aid. 

You have to pay back the loan amount in each case, but you get some time in hand and other benefits. 


Federal student loans help students who wish to apply for higher studies that can be expensive otherwise. But if you have passed out of school, you still are in debt; you are continually paying the installments, thinking of going back to school can be difficult. In such an instance, you should look out for diverse ways to get support. Knowing the difference between deferment and forbearance and choosing the right one can help you in a significant way. 

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Discolsure: I am not a financial expert and it is highly recommended that you seek out a professional before making any financial decisions. Articles are informational and for educational purposes only.

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