Student Loan Deferment vs Forbearance: The Interest Difference That Costs Families
For families who need a break from the student loan bill. Not a loan, not a refinance. Just what each kind of pause really costs.
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(877) 444-0912 →Key takeaways
- The main difference is interest. In a deferment, interest isn't charged on some loan types. In a forbearance, it's charged on all of them.
- Neither one generally counts toward PSLF or income-driven discharge. A pause stops that clock.
- Economic hardship and unemployment deferments won't be available for loans made on or after July 1, 2027.
- StudentAid.gov suggests looking at an income-driven plan first. On some plans, the payment can be as low as $0.
In this article
When money's tight, a pause on the student loan bill sounds like relief. Sometimes it is. But deferment and forbearance aren't the same thing, and the difference shows up later, on the balance.
Here's how each one works, what it costs, and when a lower payment does more for a family than a pause.
The one difference that matters most: interest
StudentAid.gov puts it simply: the difference between deferment and forbearance has to do with interest.
- DefermentA pause on federal student loan payments for a specific situation, like unemployment or economic hardship. Interest isn't charged on some loan types.: interest isn't charged on some loan types, like Direct Subsidized Loans, subsidized parts of consolidation loans, and Perkins Loans. On other loans, it is.
- ForbearanceA pause or reduction in federal student loan payments, often at your servicer's discretion. Interest is charged on all loan types.: interest is charged on all loan types.
What happens to that interest when the pause ends is different, too. After a deferment, unpaid interest on Direct and FFEL loans is added to your principal. After a forbearance, for most loans it isn't added to principal, and you pay it off through your normal payments. The exception is FFEL loans not held by the Department of Education, where it is added.
The cost nobody mentions: the clock stops
If you're working toward PSLFPublic Service Loan Forgiveness, a federal program for people who work full time for a qualifying public service employer and make 120 qualifying payments. or income-driven discharge, a pause usually stops your progress. StudentAid.gov says forbearance won't let you make progress toward forgiveness, and in most cases deferment won't either.
We call this the paused-clock cost: the bill goes away for a while, and so do the months you were counting.
Thinking about pausing your payments?
Find out what's on your loan file before you make a decision. Someone can compare a pause with a lower payment for your loans.
Call (877) 444-0912 Free review · no obligation · no upfront cost · 8am–5pm PTDeferment vs forbearance, side by side
| Deferment | Forbearance | |
|---|---|---|
| Interest | Not charged on some loan types | Charged on all loan types |
| After it ends | Unpaid interest added to principal on Direct and FFEL loans | Usually not added to principal, except some FFEL loans |
| Who qualifies | You must fit a type: economic hardship, unemployment, in-school, military, cancer treatment and others | General forbearance is up to your servicer; mandatory types must be granted if you're eligible |
| Length | Depends on the type | General: up to 12 months at a time, three years total, for loans made before July 1, 2027 |
| Counts toward PSLF or IDR discharge | In most cases, no | No |
What changes in 2027
A 2025 federal law changed both options for newer loans:
- Economic hardship and unemployment deferments won't be available for loans made on or after July 1, 2027.
- General forbearance on loans made on or after July 1, 2027 is limited to 9 months in any 24-month period.
If your loans were made before that date, the current rules still apply to them.
When a lower payment beats a pause
On StudentAid.gov's own deferment and forbearance pages, the suggested alternative is an income-driven repayment (IDR)A federal repayment plan that sets your monthly payment from your income and family size, not from how much you owe. plan. Your payment is based on income and family size, and on some plans it can be as low as $0 a month.
For a family whose income just dropped, that can mean a very low payment and months that keep counting, instead of a pause where interest builds and the clock stops. Our guides on student loans and having a baby and stay-at-home moms with student loans walk through two common versions of this.
One rule for any pause: keep paying until you're told it was granted. If you stop early and it isn't approved, the loan becomes delinquent and can go into default.
Why people get help with this
A pause is the option servicers mention most, because it's quick. It's not always the cheapest.
- Picking forbearance when a deferment fits. Interest may not be charged on some loans in a deferment.
- Pausing when a lower payment would count. IDR payments can be very low and keep the PSLF or discharge count going.
- The 2027 changes. Newer loans lose some deferment types and get tighter forbearance limits.
- Stopping payments too soon. A pause isn't in place until it's granted.
Want someone to handle it with you? Call (877) 444-0912.
Is a call a good fit for you?
This is most useful if…
- You have federal student loans and money is tight right now
- Your servicer offered a forbearance and you're not sure it's the best option
- You're working toward PSLF or income-driven discharge
- You've already used a lot of forbearance time
Probably not for you if…
- All of your loans are private
- You're already on a payment that fits and just need a short, planned break
Quick check: does a call make sense for you?
This isn't for everyone. Take 60 seconds and see if it fits your situation.
Two or more is a good sign a call is worth a few minutes.
Call (877) 444-0912Common questions
Does it cost anything to call?
No. It's a free review, with no obligation and no upfront cost.
Does forbearance hurt your credit?
An approved deferment or forbearance isn't a missed payment. What hurts credit is stopping payments before the pause is approved. StudentAid.gov says to keep paying until you're notified it was granted.
Which is better, deferment or forbearance?
If you're eligible for a deferment, it's usually cheaper, because interest isn't charged on some loan types, like Direct Subsidized Loans. But both generally stop progress toward PSLF and income-driven discharge, so a lower income-driven payment is often worth checking first.
How long can I be in forbearance?
For loans made before July 1, 2027, a general forbearance is granted up to 12 months at a time, with a cumulative limit of three years. Loans made on or after that date have tighter limits.
Are you the government?
No. Student Debt Mastery is a private company. We're not the U.S. Department of Education, not your loan servicer, and not affiliated with the federal government.
Want someone to handle it with you?
- You call (877) 444-0912.
A real person picks up, 8am–5pm PT. - A specialist asks about your loans and goals.
Loan types, payments, income and any notices you've received. - You hear your options and decide.
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Sources (3)
- Get Temporary Relief: Deferment and Forbearance, Federal Student Aid, U.S. Department of Education. Checked Oct 27, 2026.
- Student Loan Deferment, Federal Student Aid, U.S. Department of Education. Checked Oct 27, 2026.
- Student Loan Forbearance, Federal Student Aid, U.S. Department of Education. Checked Oct 27, 2026.
About this guideWritten by the Student Debt Mastery Editorial Team. We update guides when federal rules change and list our sources on every article. Read our editorial policy.
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