Student loan deferment and student loan forbearance are often confused with the many types of student loan forgiveness programs that a borrower might come across. These two tools can be lifesavers for a borrower who is having trouble making his or her student loan payments.
With that out of the way, how can student loan deferment or student loan forbearance help you? If you are having trouble making student loan payments, applying for a deferment may be one option.
Compare Our Top Picks For Student Loan Refinance For 2021
Overview
| Key | Value |
|---|---|
| Variable APR: | 2.25% – 6.49% |
| Fixed APR: | 2.99% – 6.94% |
| Minimum Credit Score: | 650 |
| Minimum Income: | None |
| Fees: | None |
| Minimum Loan Amount: | $5,000 ($10,000 in CA) |
Details
| Key | Value |
|---|---|
| Eligible Loans: | Private & Federal |
| Eligible Degrees: | Undergraduate & Graduate |
| Loan Terms: | 5, 7, 10, 15, 20 years |
| Borrower Residency: | All states |
| Hardship Deferment: | Yes |
| Co-signer Option: | Yes |
Overview
| Key | Value |
|---|---|
| Variable APR: | 1.99% – 5.74% |
| Fixed APR: | 2.98% – 5.89% |
| Minimum Credit Score: | 650 |
| Minimum Income: | None |
| Fees: | None |
| Minimum Loan Amount: | $5,000 |
Details
| Key | Value |
|---|---|
| Eligible Loans: | Private & Federal |
| Eligible Degrees: | Undergraduate & Graduate |
| Loan Terms: | 5-20 years |
| Borrower Residency: | All States except KY or NV |
| Hardship Deferment: | Yes |
| Co-signer Option: | No |
Overview
| Key | Value |
|---|---|
| Variable APR: | 2.39% – 6.01% |
| Fixed APR: | 2.79% – 5.99% |
| Minimum Credit Score: | 680 |
| Minimum Income: | $35,000 |
| Fees: | None |
| Minimum Loan Amount: | $15,000 |
Details
| Key | Value |
|---|---|
| Eligible Loans: | Private & Federal |
| Eligible Degrees: | Undergraduate & Graduate |
| Loan Terms: | 5, 7, 10, 15, 20 years |
| Borrower Residency: | All States |
| Hardship Deferment: | Yes |
| Co-signer Option: | Yes |
Overview
| Key | Value |
|---|---|
| Variable APR: | 1.89% – 5.99% |
| Fixed APR: | 2.63% – 6.25% |
| Minimum Credit Score: | 660 |
| Minimum Income: | None |
| Fees: | None |
| Minimum Loan Amount: | $5,000 |
Details
| Key | Value |
|---|---|
| Eligible Loans: | Private & Federal |
| Eligible Degrees: | Undergraduate & Graduate |
| Loan Terms: | 5 – 20 years |
| Borrower Residency: | All states |
| Hardship Deferment: | Varies |
| Co-signer Option: | Yes |
Overview
| Key | Value |
|---|---|
| Variable APR: | 1.89% – 5.90% |
| Fixed APR: | 2.80% – 6.00% |
| Minimum Credit Score: | 700 |
| Minimum Income: | None |
| Fees: | None |
| Minimum Loan Amount: | $5,000 |
Details
| Key | Value |
|---|---|
| Eligible Loans: | Private & Federal |
| Eligible Degrees: | Undergraduate & Graduate |
| Loan Terms: | 5, 7, 10, 15, 20 years |
| Borrower Residency: | All States |
| Hardship Deferment: | Yes |
| Co-signer Option: | Yes |
Overview
| Key | Value |
|---|---|
| Overall Rate: | 1.95% – 3.85% |
| Variable APR: | – |
| Fixed APR: | 1.95% – 3.85% |
| Minimum Credit Score: | None |
| Minimum Income: | None |
| Fees: | None |
| Minimum Loan Amount: | $25,000 |
Details
| Key | Value |
|---|---|
| Eligible Loans: | Private & Federal |
| Eligible Degrees: | Undergraduate & Graduate |
| Loan Terms: | 5, 7, 10, 15 years |
| Borrower Residency: | Must live near a branch in California; New York City; Boston; Greenwich, Connecticut; Palm Beach, Florida; Portland, Oregon; or Jackson, Wyoming |
| Hardship Deferment: | No |
| Co-signer Option: | Yes |
Overview
| Key | Value |
|---|---|
| Variable APR: | 1.90% – 5.25% |
| Fixed APR: | 2.95% – 7.63% |
| Minimum Credit Score: | 680 |
| Minimum Income: | $24,000 |
| Fees: | None |
| Minimum Loan Amount: | $5,000 |
Details
| Key | Value |
|---|---|
| Eligible Loans: | Private & Federal |
| Eligible Degrees: | Undergraduate & Graduate |
| Loan Terms: | 5, 7, 10, 15, 20 years |
| Borrower Residency: | All states, except ME, ND, NV, RI, WV |
| Hardship Deferment: | Yes |
| Co-signer Option: | Yes |
Student Loan Deferment
While some student loan deferments may be automatic, the vast majority are not. You have to apply for a student loan deferment and meet certain requirements before you will be accepted for this temporary delay in payments.
The U.S. Department of Education can provide you with detail about various student loan deferment options that are available for federal student loans. Private loans usually do not have student loan deferment options, however, many student loan companies now offer student loan deferment options. If you are interested in a student loan deferment, you should contact your student loan servicer for Federal Direct and FFEL loans or the school you attended when you received your student loan if you are requesting a student loan deferment for a Perkins loan.
Student Loan Forbearance
The terms of the student loan forbearance process are usually, but not always, tougher than those granted with a student loan deferment. Â You might apply for a student loan forbearance if you are having trouble making your monthly student loan payments, but you do not qualify for a student loan deferment, usually due to illness or financial hardship.
Unlike student loan deferment, you will accrue student loan interest on any student loans in forbearance (including subsidized student loans). You may choose to pay this student loan interest while your student loan is in forbearance, but you are not required to do so. If you don’t pay the interest as it accrues, your unpaid accrued interest will be capitalized and added to your principal balance.
