What is the difference between a loan deferment and a loan forbearance?

A loan deferment and a loan forbearance are two different types of options that students in Kansas can use when considering their student loan repayment options. A loan deferment is a way to temporarily pause your loan payments for a certain period of time. This works well when a student has other financial obligations and needs relief from his or her loan payments for a period of time. This type of option is offered by loan servicers in Kansas and can be requested directly from the loan servicer or it can be requested through an online loan management system. A loan forbearance, on the other hand, is when a loan servicer agrees to reduce or suspend the monthly payments for a certain period of time. This option is often used when a borrower is facing financial hardship or when they are unable to make their scheduled payments. Unlike a deferment, a forbearance does not pause the accrual of interest on the loan, which can increase the loan balance over time. This option is also offered by loan servicers in Kansas, with the borrower applying directly to the loan servicer or through an online loan management system. In summary, a loan deferment allows a student to pause loan payments for a certain period of time, while a loan forbearance reduces or suspends the payments for a certain period of time. Both options are offered by loan servicers in Kansas.

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What is the difference between a loan deferment and a loan forbearance?

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