Student loan deferment is an agreement between the student and
lender
A creditor or lender is a party (e.g., person, organization, company, or government) that has a claim on the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property ...
that the student may reduce or postpone repayment of a
student loan
A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses. It may differ from other types of loans in the fact that the interest r ...
for a designated period. Deferment or forbearance will prevent the loan from going into
default, but may increase the overall cost of the loan. Students may be eligible for deferment while experiencing financial hardship or unemployment. The lender may require valid proof of financial hardship and other financial information when the student applies.
See also
*
Forbearance
Forbearance, in the context of a mortgage process, is a special agreement between the lender and the borrower to delay a foreclosure. The literal meaning of forbearance is "holding back". This is also referred to as mortgage moratorium.
Applica ...
References
{{reflist
Education finance