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Everything You Need to Know About Student Loan Deferment & Forbearance
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Everything You Need to Know About Student Loan Deferment & Forbearance

Understanding Student Loan Deferment and Forbearance

Overview of Deferment and Forbearance

  • If struggling with student loan debt, borrowers may temporarily pause payments on federal student loans through deferment or forbearance.
  • Deferment: Pauses repayment of the loan principal; the government may cover interest during this period.
  • Forbearance: Only pauses repayment of the principal; interest continues to accrue.

Eligibility Criteria for Deferment or Forbearance

  • Borrowers facing unemployment, significant illness, or major economic hardship may qualify for deferment or forbearance.
  • Additional qualifications include participation in national service, medical residency, active military duty, or enrollment in college/career school.

Public Service Loan Forgiveness Program

  • The Public Service Student Loan Forgiveness Program forgives federal student loan debt after 120 consecutive on-time payments for those working full-time in qualified public service jobs.
Video description

Many college graduates need help with debt management. If you meet certain criteria, you may be eligible to receive a deferment or forbearance, which allows you to temporarily postpone or reduce your federal student loan monthly payments. This will help you avoid defaulting on the loan, even if you are facing financial hardship. Learn more about your student loan deferment & forbearance at http://www.consumercredit.com/financial-education/student-loans/repaying-overview/deferment-and-forbearance.aspx For more personal financial guidance please visit us at: https://www.consumercredit.com/debt-help/?ODSource=YouTube or call us at 866-206-5450 Get a free credit counseling session, reduce your interest rates, prevent late fees, and more. Call ACCC to get debt help today!