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

Deferment and forbearance are two common options for student loan borrowers in Virginia when it comes to managing student debt. A deferment is when your lender agrees to pause or postpone payments on your loan. During a deferment, you do not have to make payments and interest will not accumulate. You may be able to get a deferment if you are unemployed, have a reduced income, or if you are enrolled in school at least half time. Forbearance is another option if you are having trouble making payments on your student loan. With forbearance, your payments can be reduced or temporarily stopped, but interest will continue to accrue on your principal balance. This means that after the forbearance ends, you’ll owe more than you did initially. Forbearance is offered to borrowers who are experiencing financial hardship or illness and it may be the best option if you are not eligible for a deferment. In summary, deferment and forbearance are both options for student loan borrowers in Virginia when it comes to managing debt. Deferment allows you to pause payments and not accrue interest, while forbearance reduces or pauses payments but allows you to accrue interest. Depending on your situation, you may be eligible for either option and it’s important to evaluate all of your options before making a decision.

Related FAQs

Are there any grants or scholarships that provide student loan debt relief?
Are there any tax credits or deductions for student loan payments?
Are there any student loan repayment programs available to parents?
Are there any grants or scholarships available to help with student loan repayment?
Are there any special programs for students in certain professions?
Are there any options for students with bad credit to get student loans?
What are the benefits of refinancing my student loans?
Are there any programs available to help me refinance my student loans?
Are there any financial aid programs that cover the cost of books and other supplies?
How do I calculate my monthly payments on my student loans?

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

Related FAQs

Related Blog Posts