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  • Listed: August 12, 2022 4:31 pm
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A deferment is a temporary pause to your student loan payments for specific situations.  You might seek a deferment for active duty military service and reenrollment in school.

The U.S. Department of Education (ED) published a list of the reasons qualifying you for a deferment . If you have a subsidized loan, you don’t have to pay interest on the loan during deferment. If you have an unsubsidized loan, you are still responsible for the interest during deferment. If you don’t pay the interest as it accumulates, it will be added to your loan balance, and the amount you have to pay in the future will be higher.

Private student loans may or may not have a deferment option. Deferment practices vary among private lenders.

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