If you should be in a short-term bind that is financial you’ll be eligible for a deferment or even a forbearance. With either of the choices, it is possible to temporarily suspend your repayments.
In terms of deferment and forbearance, however, there are two main considerations to give consideration to:
- More often than not, interest will accrue through your period of forbearance or deferment. What this means is balance will increase and you will pay more within the full lifetime of the loan.
- Any period of deferment or forbearance likely will not count toward your forgiveness requirements if you’re pursuing loan forgiveness. What this means is you will stop making progress toward forgiveness until such time you resume payment.
Give Consideration To Another Repayment Plan First
Due to the effect on interest and prospective loan forgiveness, it may be well well worth checking out another repayment plan before you take into account deferment or forbearance.