Are there downsides to using deferment or forbearance?

The main one is interest continuing to accrue on unsubsidized and private loans (and sometimes capitalizing afterward), which increases your total balance even though your required payments have stopped. They're useful tools for genuine short-term hardship, but relying on them for a long stretch can add up, so it's worth comparing against income-driven repayment as an alternative.

What's the difference between deferment and forbearance?

Deferment is a specific, eligibility-based pause in payments — for things like being enrolled in school, unemployment, or economic hardship — during which subsidized loan interest doesn't accrue. Forbearance is a more general, often easier-to-get pause that a servicer can grant for financial difficulty, but interest keeps accruing on every loan type during forbearance.

What habits actually move the needle on graduating with less debt?

The biggest levers tend to be borrowing only what you need each term rather than the maximum offered, finishing in four years when possible, keeping housing and living costs modest, and applying for scholarships every year rather than just as an incoming student, since renewal and upperclassman scholarships are often less competitive.

Is it better to take an unpaid internship or a paid summer job if I need money for school?

If borrowing is a real concern, a paid job that funds your school year usually takes priority, though it's worth weighing whether an unpaid internship offers a clear path to a job or paid work later in your field. Some students split the difference with a part-time paid job alongside a shorter internship.

How often should I check in on my student loan accounts?

Checking every few months is generally enough while you're in school, and more often — monthly — once you're in repayment, so you can catch billing errors, confirm autopay is working, and see how your balance is trending. Set a calendar reminder if it's not already part of your routine.

Deferment vs. Forbearance: How to Pause Student Loans in School Without Wrecking Your Future

If you’re enrolled in school and staring at a student loan bill you can’t pay, you have two main pause buttons: deferment and forbearance. They sound similar, but they come with very different price tags. Choosing the wrong one, or using one without understanding the interest, can cost you hundreds or thousands of dollars. The good news is that the rules are learnable, and a little planning now can keep your future self out of a deeper hole.

In-school deferment is usually the first stop. If you’re enrolled at least half-time in an eligible school, your federal Direct Subsidized and Unsubsidized loans, and often Grad PLUS loans, can be put into deferment. Your school usually reports enrollment, and the servicer applies it automatically, but check your status anyway. If you’re not sure which type you have, look at your loan summary or call your servicer. The big difference is interest. Subsidized loans don’t accrue it during deferment; unsubsidized loans do, and that interest gets added to your balance when repayment starts. A deferred unsubsidized loan is still growing. Pay the interest if you can.

Forbearance is the backup pause. It can be used when you don’t qualify for deferment, when deferment runs out, or when you have private loans with fewer protections. Federal loans have general forbearance, which your servicer grants for hardship, medical bills, or unemployment, and mandatory forbearance for specific service or residency situations. Forbearance can also be an option if you’re enrolled less than half-time or attending a school that doesn’t qualify for in-school deferment. The catch: interest keeps accruing on almost every forbearance, including subsidized loans. When it ends, unpaid interest capitalizes and starts collecting interest itself.

Let’s make that real. Suppose you have a $30,000 unsubsidized loan at 6.5 percent interest. That’s about $5.35 a day, or $160 a month. A year of forbearance adds about $1,950 to your balance. If that interest capitalizes, your new principal is nearly $32,000, and future interest is charged on that larger amount. Do that for a few years, and you’ve paid thousands for the privilege of not paying. Deferment isn’t free either with unsubsidized loans, but it stops the bleeding on subsidized ones. Rule of thumb: deferment first, forbearance second.

If you’re still in school, cash flow is probably tight. You don’t need to pay off loans before graduation. You need to avoid delinquency, default, and unnecessary interest. If you have only subsidized loans, in-school deferment is a clean win. If you have unsubsidized loans, try to pay the monthly interest. Even $20 or $30 helps. A small payment now can save you from a bigger capitalization bill later. Set up autopay if you can, but confirm it’s applying to the right loans. If you can’t pay, that’s okay. Deferment exists for a reason. Just don’t ignore the servicer. Open the mail, answer emails, and update your address. Missing a deadline can turn a manageable pause into delinquency.

Private loans are different. Many lenders offer in-school deferment, but it may be shorter and interest almost always accrues. Forbearance may be available for a few months, but it can come with fees and higher rates. Private loans rarely come with the same consumer protections as federal loans, so read the fine print before agreeing to a pause. Call your lender before you miss a payment. Ask about interest-only payments to keep your balance from growing. If you have a cosigner, keep them in the loop.

When you graduate or drop below half-time, deferment ends. Federal Direct Loans usually give a six-month grace period before repayment, but not all loans have that. Forbearance doesn’t reset grace. Plan for the first payment before it arrives. Check your servicer and see if an income-driven repayment plan will lower your bill. If you used forbearance, recalculate your balance. The earlier you look, the more options you have.

Deferment and forbearance are tools, not solutions. Deferment is usually the cheaper pause, especially for subsidized loans. Forbearance is a safety valve. Use them intentionally, pay interest when you can, and keep talking to your servicer. A pause is not progress, but it can buy you time to make a better plan. Your future self will thank you.

Deferment vs. Forbearance: How to Pause Student Loans in School Without Wrecking Your Future

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