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

When dealing with student loan law in Washington, it is important to understand the difference between a loan deferment and a loan forbearance. A loan deferment is a type of repayment option which allows a student to temporarily postpone their loan payments. This means that the borrower does not have to make any payments for a certain period of time and that their loan servicer may not charge any interest during this period. On the other hand, a loan forbearance is a type of repayment option which allows a borrower to have their loan payments temporarily reduced or suspended. This means that the borrower will still have to make payments, but at a lower amount. The loan servicer may also charge interest during this period, however, this will be at a reduced rate. In both cases, the amount of time that a loan can be deferred or forgiven will depend on the loan servicer and the individual’s circumstances. It is important to speak to the loan servicer to understand the options available to you. It is also important to make sure that you understand the consequences of both a loan deferment and a loan forbearance. For example, while a loan deferment means that your loan payments are temporarily postponed, it also means that you may be charged interest on the loan after the deferment period is over. Similarly, while a loan forbearance has the benefit of reducing or suspending your payments while still keeping the loan in good standing, it can also extend the repayment period of the loan and increase the total amount you have to pay back.

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

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