Common Features: Deferment vs. Forbearances
Student loan borrowers often confuse the terms "deferment" and "forbearance."
Below you will find some common features for FFELP loans.
| Deferment |
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Forbearance |
- Must complete deferment form and meet eligibility requirements
- Interest paid on Subsidized loans
- Interest accrues on Unsubsidized loans
- Unpaid interest is capitalized
- Six-month to one-year increments
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- Can complete forbearance form or call customer service to request verbal forbearance (verbal forbearance
not available on spousal consolidation)
- Interest accrues on Subsidized and Unsubsidized loans
- Unpaid interest is capitalized
- Can be given up to one-year increments
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