A deferment is a postponement of loan repayment that is allowed under certain conditions. During deferment, interest does not accrue on Direct Subsidized Loans, Subsidized Federal Stafford Loans, and Federal Perkins Loans. All other federal student loans that are deferred will continue to accrue interest. Any unpaid interest that accrued during the deferment period may be added to the principal balance (capitalized) of the loan(s).


Deferments are similar to forbearances, but are typically reserved for more severe situations and may require proof for qualification.


Some reasons for deferment include enrollment in school, inability to pay due to economic hardship, unemployment, active military service and more. 


Student Debt Manager will automatically help you determine whether or not you may qualify for a deferment.