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If you can't make a student loan payment, pausing it beats defaulting — but how you pause matters. Deferment and forbearance sound similar and cost very differently. Here's the difference, and the option people often overlook.
Both let you pause federal student loan payments
Deferment and forbearance are two ways to temporarily stop making payments on federal student loans during hardship — job loss, illness, returning to school, military service. They keep you out of default while you regroup.
The big difference is interest
In deferment, the government may pay the interest on your SUBSIDIZED loans (and Perkins) — so the balance doesn't grow. In forbearance, interest always accrues on every loan, including subsidized ones, and gets added to your balance. Deferment is usually the cheaper option when you qualify.
Deferment has eligibility categories; forbearance is more flexible
Deferment requires meeting a specific situation (in-school, unemployment, economic hardship, military). Forbearance is more discretionary — a servicer can grant it for general financial difficulty — which is why it's easier to get but costlier.
In one line
Deferment may freeze interest on subsidized loans (cheaper, but you must qualify). Forbearance always lets interest grow (easier to get, but it costs more). When you qualify for deferment, it usually wins.
An income-driven repayment plan is often better than either
Before pausing, look at an income-driven repayment (IDR) plan. If your income is low, your required payment can drop to as little as $0 — which keeps you current, can count toward forgiveness, and may beat a pause where interest piles up.
Pausing can cost you progress toward forgiveness
Months in forbearance generally don't count toward Public Service Loan Forgiveness or IDR forgiveness. A $0 IDR payment does count. If forgiveness is your path, a pause can quietly set you back.
Use a pause for short, true emergencies
A short forbearance to get through a genuine cash crunch is reasonable. Using it for years, while interest compounds, is how a manageable loan becomes a much bigger one.
Whatever you do, don't simply stop paying without contacting your servicer. Missing payments leads to delinquency and then default — wrecked credit, wage garnishment, and seized tax refunds. A deferment, forbearance, or IDR plan is always better than silence. Call your servicer before you miss a payment.
Know your options: compare federal repayment plans, see student loan basics, and read the full student loan guide.