If you are experiencing a financial hardship, you may be able to temporarily postpone making payments with a deferment or forbearance. Deferments and forbearances help you avoid becoming delinquent and possibly defaulting on your loans.
Deferment options vary depending on what type of loan you have and your specific circumstances. You may qualify for a deferment if, for example, you are enrolled in school or serving in a residency program.
After you have requested a deferment, you must continue making monthly payments until your lender notifies you that your deferment request has been approved. This will prevent any unnecessary delinquency or possible default.
Forbearance offers a temporary suspension of your student loan payments if you don’t qualify for a student loan deferment, your deferment options have been exhausted or you are experiencing financial difficulties. You are responsible for all interest that accrues regardless of the type of loan you have.
After you have requested forbearance, you must continue making monthly payments until your lender notifies you that your request has been approved. This will prevent any unnecessary delinquency or possible default.
Important Message About Deferments and Forbearances
It is important to understand that postponing payments increases the amount of interest repaid over the life of the loan and it is best to use deferment and forbearance only when necessary. Here’s why:
Interest will continue to accrue during periods of deferment and forbearance and any unpaid interest will be capitalized (added to the principal balance of your loan) at the end of the deferment or forbearance.
If you have a private student loan from Discover, please visit Discover Student Loans for specific details.