Introduction
Life has a way of throwing curveballs when you least expect them. Job loss, medical emergencies, or unexpected expenses can strain your finances, making it difficult to meet your financial obligations, including student loan payments. When facing these challenges, it's essential to know your options. Loan deferment and forbearance offer temporary relief from student loan payments, providing a financial cushion during challenging times.
Navigating the complexities of student loans can be daunting, especially when facing financial hardship. This article provides a clear understanding of loan deferment and forbearance, outlining their differences, eligibility requirements, and potential impact on your loan repayment journey. Understanding these options empowers you to make informed decisions and alleviate financial stress during challenging times.
Loan Deferment: A Closer Look
Loan deferment allows you to temporarily postpone your loan payments for a specific period. During this time, you are not required to make any payments, and interest may or may not accrue, depending on the type of loan you have.
Understanding Loan Forbearance
Loan forbearance, like deferment, offers temporary relief from loan payments. However, it's crucial to understand that interest continues to accrue during forbearance for all loan types. This means your loan balance will increase during the forbearance period.
