There are several situations that allow current and former students to qualify for a student loan deferment. These deferment options will vary depending on the kind of loans that are outstanding as well as the borrower's financial and workplace status. Deferment lets you temporarily suspend making your student loan payments. It’s important to understand - you are still responsible for paying your education debt even when granted deferment. Deferment is temporary and limited to specified time frames.
A deferment means that no payments need to be made during the approved deferment period. The payments can be deferred until a later date. In the case of Subsidized Stafford Loans, interest charges will not accrue during the deferment. This means that the size of the loan will not grow due to interest charges, as long as the deferment is in effect.
Types of Student Loan Deferments
There are a total of five types, or categories, of student loan deferments that we're going to discuss. The types of deferments listed below apply to Federal Stafford loans, Supplemental Loans, PLUS, and consolidated student loans. Each of these has its own set of rules, and will be explained in more detail in subsequent sections: