Forbearance
Pros:
-
Lets you temporarily pause or reduce your student loan payments during short-term financial hardship.
-
Easier to qualify for than deferment, forbearance is usually based on financial need.
-
Helps you avoid going into default if you can't make full payments.
Cons:
-
Interest continues to grow on all loan types, including subsidized loans.
Note: If you're in the SAVE forbearance, interest will not accrue. -
If unpaid interest is added to your balance (capitalized), it can increase the total amount you owe.
-
Usually granted in short periods (3–6 months), with limits on how long you can use it overall.
-
Does not count toward forgiveness programs like Public Service Loan Forgiveness (PSLF) or Income-Driven Repayment (IDR) forgiveness.
Deferment
Pros:
-
No interest accrues on subsidized or Perkins loans during deferment, helping you save money.
-
Time spent in deferment due to military service or economic hardship can count toward PSLF and other forgiveness programs.
Cons:
-
Interest still accrues on unsubsidized and PLUS loans, increasing your loan balance over time.
-
You must meet specific qualifications, meaning not all borrowers are eligible.
-
Can extend your repayment timeline if you’re not actively paying down your balance.
Quick Summary
-
Forbearance is easier to get but more expensive in the long run because interest keeps growing.
-
Deferment can save you money, especially on subsidized loans, but it’s harder to qualify for.
Both options can help you stay out of default during tough times, but they can add to your long-term costs if used too often.
Tip: If you're struggling with payments, we recommend exploring Income-Driven Repayment (IDR) plans first, they help keep you on track for forgiveness and lower your monthly payments. You can see your options for repayment by entering all of your information in the Savi application.
Savi Premium members can get help applying for forbearance or deferment if needed.