Can't make your student loan payments right now? You may be able to pause them legally without going into default.
If you lose your job, face a medical crisis, or graduate into a situation where your income simply does not cover your loan payments, federal student loans come with two options for temporarily stopping payments: deferment and forbearance. Both prevent you from going into default while you get back on your feet. They are not the same thing, and the difference matters — particularly when it comes to what happens to the interest on your loans while payments are paused.
This page covers how deferment and forbearance work for federal student loans, who qualifies for each, and what each option actually costs you over time. For people whose income is likely to stay low for an extended period, an income-driven repayment plan — which sets your monthly payment based on what you earn rather than what you owe — is often a better long-term solution than repeatedly using deferment or forbearance. That option is covered on the income-driven repayment page.
The most important thing to understand before you choose
The key words to pay attention to are “subsidized” and “Unsubsidized”. As both deferment and forbearance stop your required monthly payments. The difference is what happens to interest while you are not paying.
With deferment on a Direct Subsidized Loan, the federal government pays the interest that accrues during the deferment period. Your balance does not grow. With deferment on a Direct Unsubsidized Loan, interest continues to accrue while you are not paying, and when deferment ends that interest is added to your principal balance — meaning you owe more than you did before. With forbearance, interest accrues on every type of federal loan, subsidized and unsubsidized. There is no exception. Every month you are in forbearance, your balance grows.
This means deferment is almost always the better option if you qualify for it. Forbearance should be a fallback when deferment is not available for your situation.
Deferment — when it applies and how long it lasts
Deferment is available for a specific set of circumstances. You need to apply for it — your servicer does not place you in deferment automatically. The qualifying situations for federal loan deferment include being enrolled in school at least half-time, being unemployed and actively seeking work, serving on active military duty, serving in the Peace Corps, undergoing cancer treatment, being enrolled in an approved rehabilitation training program for a disability, and experiencing economic hardship based on your income and debt level.
Economic hardship deferment and unemployment deferment are each capped at a maximum of three years over the life of your loans. In-school deferment lasts as long as you remain enrolled at least half-time. Military service deferment lasts through the active duty period and for a period afterward. Cancer treatment deferment lasts through treatment and for six months after treatment ends.
You must apply before missing payments. Once you have missed payments and moved toward default, deferment is no longer an option. If you can see that payments are going to become impossible — because you have been laid off, because you are about to start treatment, because your income has dropped sharply — apply immediately rather than waiting until you have already fallen behind.
One situation that sometimes comes up: going back to graduate school to defer payments. While returning to school does qualify you for in-school deferment, graduate school adds to your total loan balance and ultimately makes the repayment problem larger, not smaller. It is worth thinking through carefully before using graduate school as a deferment strategy.
Forbearance — general and mandatory
Forbearance comes in two forms. General forbearance is discretionary — your servicer can grant it if you are experiencing financial hardship, medical expenses, or a change in employment, but it is not required to. It is granted in increments of up to 12 months at a time, with a cumulative maximum of three years. Because interest accrues on all loans during general forbearance, a borrower who uses the full three years can add a significant amount to their balance depending on their interest rate and original loan amount.
Mandatory forbearance is different — your servicer is required to grant it if you meet the eligibility criteria. Qualifying situations include serving in an AmeriCorps or National Guard position, completing a medical or dental internship or residency, performing teaching service that qualifies for Teacher Loan Forgiveness, and having total monthly student loan payments that equal at least 20 percent of your gross monthly income. If you are working toward Teacher Loan Forgiveness and want to explore forgiveness through service programs more broadly, those are covered on the student loan forgiveness through service page.
Interest accrues during both types of forbearance. You can choose to pay the interest as it builds so your balance does not grow, but you are not required to during the forbearance period.
Private student loans are handled differently
The rules above apply to federal student loans. Private student loans — those taken out through banks, credit unions, or private lenders rather than the federal government — are governed by the terms of the individual loan agreement. Some private lenders offer their own forms of forbearance or deferment, particularly for situations like medical residency or financial hardship, but there is no federal requirement that they do so. If you have private loans and are struggling with payments, contact your servicer directly to ask what options exist under your specific loan agreement.
What to expect when you apply
Applications for deferment and forbearance go through your loan servicer — the company that handles your federal loan billing and correspondence. If you are not sure who your servicer is, you can find that information by logging into your account at https://studentaid.gov/. Each servicer has its own application process and forms, though the underlying federal eligibility rules are the same regardless of which servicer you have.
For most deferment types you will need documentation — proof of enrollment from your school, a notice of unemployment benefits, military orders, or a letter from a treating physician for cancer treatment deferment, depending on the reason. Gather the relevant documentation before you contact your servicer so the process moves faster.
The US Department of Education's main line is 1-800-872-5327 if you have questions about your federal loans that your servicer cannot resolve.
If you need help understanding your options
The rules around deferment and forbearance interact with repayment plans and forgiveness programs in ways that are not always obvious. A nonprofit credit counselor who works with student loan borrowers can review your full situation — your loan types, your income, your servicer — and help you understand which combination of options makes the most sense for you. Many offer this at no cost or on a sliding scale.
A directory of nonprofit credit counseling agencies is at the NHPB national and local directory of credit counseling agencies. Your school's financial aid office is also a resource, particularly if you are recently out of school and not yet working.
A note on loans issued after July 2027
For federal student loans issued on or after July 1, 2027, the rules on deferment and forbearance change. Economic hardship and unemployment deferments will no longer be available for those loans. Forbearance will be capped at nine months within any 24-month period rather than the current 12-month annual limit. Borrowers with existing loans are not affected by these changes — the current rules continue to apply to loans already issued. If you are considering borrowing new federal loans for the 2027-28 academic year or later, this is worth factoring into your planning.
Federal student loan deferment and forbearance rules, eligibility criteria, and application procedures are set by federal law and Department of Education regulation and can change. The information on this page reflects current rules for existing borrowers and noted upcoming changes for new borrowers. Verify current eligibility requirements and application procedures directly with your loan servicer or at studentaid.gov before making decisions about your repayment. Nothing on this page constitutes legal or financial advice.
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