What's the Difference Between Student Loan Forbearance and Deferment?

If money is tight and your federal student loan payments are higher than you can afford, you might be able to get a break from making payments through a federal program called "deferment" or "forbearance."

• With a deferment, your loan payments are postponed, and interest doesn't accrue on subsidized loans.
• With a forbearance, your loan payments are postponed or reduced, but interest continues to accrue during the forbearance period.

The One Big Beautiful Bill Act, which was signed into law on July 4, 2025, eliminated unemployment and economic hardship as reasons for getting a deferment for borrowers who take out loans on or after July 1, 2027. This law also reduced the amount of time borrowers who take out new loans on or after that date can be in forbearance.

What Kind of Student Loans Are Eligible for Deferment? And Forbearance?

Deferment and forbearance are available for federal student loans, but are usually unavailable for private student loans. If you're unsure what kind of loans you have, go to the National Student Loan Data System to track down your loan type.

But deferment and forbearance aren't available if you're in default on your federal student loans.

What Is a Deferment of Federal Student Loans?

Again, in a deferment, loan payments are halted, and interest doesn't accrue on subsidized loans. Subsidized loans include Federal Perkins Loans, Direct Subsidized Loans, Subsidized Federal Stafford Loans, the subsidized portion of Direct Consolidation Loans, and the subsidized portion of FFEL Consolidation Loans.

How Can I Qualify for a Deferment?

Deferment is available under several different circumstances, including when:

• you're enrolled at least half-time in a post-secondary school (if you received a Direct PLUS Loan or an FFEL PLUS Loan as a graduate or professional student, you may get a deferment for an additional six months after you stop being enrolled at least half-time)
• you're a parent who received a Direct PLUS Loan or an FFEL PLUS Loan (you may get a deferment while the student for whom you obtained the loan is enrolled at least half-time at an eligible college or career school, and for an additional six months after the student stops being enrolled at least half-time)
• you're enrolled in an approved graduate fellowship program (your school can tell you if it is an approved program for deferment)
• you're disabled and enrolled in an approved rehabilitation training program
• you're unemployed or unable to find full-time employment (this deferment is limited to three years) (available until July 1, 2027)
• you're experiencing economic hardship (available until July 1, 2027) or serving in the Peace Corps (this deferment is limited to three years)
• you're on active duty with the military, or have been on active duty within the past 13 months, in connection with a war, military operation, or national emergency, or
• you're receiving treatment for cancer or after treatment ends.

Changes to Deferments Under the One Big Beautiful Bill Act

Borrowers who take out federal student loans on or after July 1, 2027, can't get a deferment based on economic hardship or unemployment.

How Do I Get a Deferment of My Federal Student Loans?

You must apply to your loan servicer to receive a deferment. Your servicer is the company that communicates with you about loan payments.

What Is a Forbearance of Federal Student Loans?

A forbearance suspends or reduces your loan payments, but interest continues to accrue during the forbearance period. If you don't pay the interest during that time, it may be "capitalized," which means the interest is added to your principal balance.

Even though the terms for forbearance aren't as favorable as deferment, forbearance is definitely a better option than default if you're in financial distress.

How Can I Qualify for Forbearance?

Your loan servicer determines if you're eligible for forbearance.

When the Servicer May Grant Forbearance

In some cases, the loan servicer has the discretion to grant forbearance. A servicer may grant what's called a "general forbearance" if you're experiencing:

• financial problems
• medical expenses
• a change in your employment, or
• some other reason your servicer finds acceptable.

General forbearances are available for Direct Loans, FFEL Program loans, and Perkins Loans, but for no more than 12 months at a time.

When the Servicer Must Grant Forbearance

In other cases, a servicer must offer a "mandatory forbearance." Forbearance is mandatory if:

• you're enrolled in a medical or dental internship or residency, and you meet specific requirements
• your monthly student loan payment is 20% or more of your monthly gross income (and you meet other conditions)
• you're serving in a national service position, such as Americorps, or
• you're eligible for teacher loan forgiveness, the Department of Defense's loan repayment program, or in the National Guard.

Ask your loan servicer for specific details on qualifying for mandatory forbearance.

Changes to Forbearances Under the One Big Beautiful Bill Act

For borrowers who take out federal student loans on or after July 1, 2027, many forbearances will be available for up to 9 months in any 24-month period. Current rules allow forbearances of up to 12 months, with a cumulative limit of 3 years.

Other Options for Dealing With Student Loan Debt

If you're experiencing financial hardship, you should also consider the different repayment plans and forgiveness options that the Department of Education offers for federal student loans.