Deferment vs. forbearance: how to pause student loan payments without making it worse

Both deferment and forbearance are temporary, and neither lowers what you owe. The better question is how much interest builds while you're not paying, and whether the time counts toward forgiveness.

What is deferment?

Deferment is a pause you qualify for based on your situation. Some of the more common reasons include:

Unemployment, for up to three years

Economic hardship, for up to three years

Being enrolled in school at least half-time

Active-duty military service

Cancer treatment

The big perk here is interest. On Direct Subsidized Loans, Perkins Loans, and the subsidized part of a consolidation loan, the government pays the interest while you're in deferment. Your balance on those loans won't grow. Interest still builds on unsubsidized and PLUS loans.

What is forbearance?

Forbearance is a pause your servicer can grant when you don't qualify for deferment. There are two kinds.

General forbearance is up to your servicer. It's usually for financial trouble, medical bills, or a job change and lasts up to 12 months at a time, with a three-year limit.

Mandatory forbearance has to be granted if you qualify. That includes medical or dental residencies, some national service programs, and cases where your monthly student loan payments are 20% or more of your gross monthly income.

Interest builds on every loan during forbearance, which adds to your balance.

What pausing payments might cost

Let’s say you owe $30,000 at 6% interest. That's about $150 in new interest every month. Pause for a year, and you could owe around $1,800 more than when you started.

Most deferments and forbearances also don't count toward Public Service Loan Forgiveness or income-driven forgiveness, which can push your forgiveness date back by years.

Another option

If your income has dropped, an income-driven plan may cost less than you think. Under the Repayment Assistance Plan (RAP), the minimum payment is $10 a month. As long as you pay, unpaid interest is waived, and each payment counts toward forgiveness.

Under Income-Based Repayment (IBR), payments can be as low as $0 if your income is low enough.

A pause still makes sense for short problems, like a few months between jobs. For longer struggles, a low payment usually leaves you better off.

A look at 2027

A 2025 law tightens the rules for loans made on or after July 1, 2027. For those loans, unemployment and economic hardship deferments go away, and forbearance is capped at nine months in any 24-month period. Loans made before that date keep the current rules.

How to ask for a pause

Contact your servicer or apply on StudentAid.gov. Some requests need proof, like unemployment benefit records or school enrollment. Keep making payments until your servicer lets you know the pause is approved, so you don't fall behind while you wait.

If your loans are in default, you can't get deferment or forbearance. You'll need to get out of default first.

What about private loans?

Private lenders aren't required to offer deferment or forbearance. Many offer short hardship pauses, usually just a few months at a time with a lifetime limit. Call your lender and ask what's available, and get everything in writing.