Loan deferment is a program in which the payments will be reduced or not be required to pay back for a exact number of time. The good thing about deferring your student loans if you lost your job, have soldiery duty or go back to school is that interest will stop accruing for that period of time. You do not have to pay interest or the commonly scheduled monthly cost while this time period. This alone can be a life safer to many Americans who find themselves in a reputation crunch and have too many bills.
There is also terms referred to as forbearance, this means that you can stop required payments for a specified number of time. The unlikeness between forbearance and deferment is that you don't have to pay the required interest back on these types of loans. Yes forbearance will temporary suspend your monthly scheduled payments but the interest will continue to add up and increase the equilibrium of your loan.
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