What is the difference between "forbearance" and "deferment"?

A loan deferment is a temporary postponement of monthly loan payment(s). For subsidized loans, accrued interest will automatically be paid by the Department of Education if the loan is deferred.  Forbearance is a temporary postponement of principal loan payments. Interest continues to accrue, but when you complete your term of service, the National Service Trust will pay the accrued interest on your behalf if you received an Education Award.

 

See Also:

Loan Deferment Overview

Forbearance Overview