Deferment vs. forbearance.
In plain English
Deferment and forbearance both let you temporarily stop or reduce federal student loan payments, but they differ in how interest is handled. In deferment, the government pays the interest on subsidized loans during the pause, so those balances do not grow, while interest still accrues on unsubsidized loans. In forbearance, interest accrues on all loan types, subsidized and unsubsidized alike, and unpaid interest can be added to the balance. Eligibility rules differ too. The standard framing is that deferment is generally the better deal when you qualify, because of that interest treatment on subsidized loans.
01Why it matters
Choosing a pause without knowing who pays the interest can quietly grow the balance, so the deferment-versus-forbearance distinction is the difference between a loan that holds steady and one that swells while paused.
02The math, step by step
A borrower with subsidized loans enters deferment: the government covers the interest, so the balance holds. The same borrower in forbearance would watch interest pile up on every loan, and that unpaid interest can be added to the principal when the pause ends.
03What this is NOT
They are not identical. Both pause payments, but deferment can keep the government paying interest on subsidized loans, while forbearance lets interest accrue on all loans. That interest difference is the whole point of choosing between them.
04Receipts
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