Deferment
How federal student loan deferment works, what it costs vs forbearance, which types exist, what changes in 2027, and a calculator.
Student loan deferment vs forbearance interest calculator
What deferment means
Deferment lets you temporarily stop federal student loan payments. Its advantage over forbearance: the government pays the interest on subsidized loans (Direct Subsidized, subsidized Stafford, Perkins) during deferment, while unsubsidized and PLUS loans keep building interest. In forbearance, interest builds on all loans.
Common deferments
- In-school (at least half-time), and for six months after on subsidized loans' grace period.
- Unemployment and economic hardship: each up to 36 months total.
- Military service, cancer treatment, graduate fellowship and rehabilitation training.
Changes coming in 2027
Under the 2025 budget law, loans made on or after July 1, 2027 won't be eligible for unemployment or economic hardship deferment, and forbearance on those loans will be limited to 9 months in any 24-month period. Consolidating after that date creates a new loan under the new rules. Existing loans keep their current options.
An income-driven plan may be better than pausing: see the student loan payback calculator.
Common questions
Does interest accrue during deferment?
Not on subsidized loans; yes on unsubsidized and PLUS loans.
What is the difference between deferment and forbearance?
In forbearance, interest builds on all loans, including subsidized ones.
Is unemployment deferment ending?
For loans made on or after July 1, 2027.
Sources
More loan and car calculators: Credit Builder Loan · Credit Freeze · FAFSA Student Loans 2026-27 · Do Medical Bills Affect Your Credit
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General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.