The average student loan borrower with federal loans graduates with $39,075 in debt. If you were to pay that amount on the Standard Repayment Plan at a rate of 5.50%, you’d have to shell out $424 per month for the next 10 years.
But depending on where life takes you after graduation, you may not be able to afford it. There are plenty of circumstances that may make repayment difficult, including going back to school, going into active military duty, and losing a job.
As such, it’s important to know how to pause student loan payments when you can’t afford them. Depending on who your lender is, though, the options can vary. Keep reading for our complete guide on pausing student loan payments.
Table of Contents
Key Points
• Borrowers can pause student loan payments through deferment and forbearance, though eligibility and terms vary depending on federal or private loans.
• Federal loan deferment allows borrowers to stop payments for up to three years, with interest accruing on unsubsidized loans but not on subsidized loans.
• Federal loan forbearance grants temporary payment relief but requires borrowers to pay all accrued interest, though interest does not capitalize for most loan types when forbearance ends.
• Private lenders set their own deferment and forbearance policies, meaning options may be limited and approvals are not guaranteed.
• Alternative options include enrolling in an income-driven repayment plan to lower monthly payments or refinancing to secure a lower interest rate or extended loan term.
Two Ways You Can Pause Student Loan Payments
Depending on your situation, you may be able to pause student loan payments through student loan deferment or forbearance. Each of these options has different requirements and outcomes, so it’s essential to understand how they work.
1. Student Loan Deferment
Note that under the ‘Big, Beautiful Bill,’ loans made after July 1, 2027 are no longer eligible for deferments based on unemployment or economic hardship.
Student loan deferment allows you to reduce or pause your payments for a set period of time. In the meantime, however, the deferred loan will continue to accrue interest, in most cases. For example, if you have an unsubsidized loan or a PLUS loan, you should consider making interest-only payments during the deferment, otherwise the interest will capitalize (be added to the loan balance) at the end of the deferment period.
This means that you’ll have a new, higher balance that includes the principal amount at the beginning of the deferment period plus the unpaid interest that accrued during deferment.
The exception is if you have subsidized federal loans or Perkins Loans, in which case you won’t be responsible for paying accrued interest.
2. Student Loan Forbearance
Another option is putting loans in forbearance. Like deferment, forbearance allows qualified applicants to delay payments for a set period of time.
The primary difference is that you’re responsible for paying any interest that accrues during the forbearance period, regardless of which type of loan you have.
Again, it is possible to make interest-only payments during the forbearance period. With most loans, interest will not capitalize at the end of the forbearance.
Key Differences Between Deferment and Forbearance
Student loan deferment and forbearance both pause payments, but they differ in how interest is handled and the conditions under which they’re granted.
• Interest accrual: During deferment, subsidized federal loans typically do not accrue interest, while all loans accrue interest during forbearance.
• Eligibility requirements: Deferment has more specific qualifications (such as unemployment, economic hardship, or returning to school), while forbearance is generally easier to qualify for.
• Length of relief: Deferment can last longer depending on the situation, while forbearance is often granted in shorter increments.
• Impact on total cost: Because interest usually pauses on subsidized loans during deferment, it is often less expensive long-term than forbearance.
• Types available: Forbearance includes both general and mandatory options, while deferment is only granted when specific criteria are met.
Federal Student Loans
The U.S. Department of Education offers both deferment and forbearance on all of its student loans. Note that depending on when your loans were disbursed, the terms may vary. For loans disbursed on or after July 1, 2027, unemployment and economic hardship deferments will no longer be available. Forbearances for loans disbursed on or after this date will be capped at nine months in a 24-month period as opposed to 12 months for loans disbursed before July 1, 2027.
Both deferment and forbearance need to be applied for through your student loan servicer. Here’s what you need to know about both options.
Qualifying for Federal Loan Deferment
If you have federal loans, you may be able to defer your student loan payments for up to three years. Here’s how to know if you may be eligible:
• You have any federal student loan, subsidized or unsubsidized.
• You’re enrolled at least half-time at an eligible school, and you received a Direct PLUS Loan or FFEL PLUS Loan as a graduate or professional student. In this case, your loans will be deferred while you’re in school at least half-time plus six months after you leave.
• You’re a parent who took out a Direct PLUS Loan or FFEL PLUS Loan on behalf of your child student, and they’re enrolled at least half-time at an eligible school. In this case, your loans will be deferred while your child remains in school plus six months after they leave.
• You’re enrolled in an approved graduate fellowship program.
• You’re enrolled in an approved rehabilitation training program for the disabled.
• You’re unemployed and unable to find employment (for loans disbursed prior to July 1, 2027).
• You’re experiencing economic hardship (for loans disbursed prior to July 1, 2027).
• You’re serving in the Peace Corps.
• You’re on active duty military service in connection with a war, military operation, or national emergency. In this case, your loans will be deferred while you’re on active duty plus 13 months afterward.
Recommended: How to Defer Student Loans When Going Back to School
Qualifying for Federal Loan Forbearance
The federal government has two types of forbearance: general and mandatory. Both can last for up to 12 months at a time before July 1, 2027, but if you still qualify once that period is up, you can request a renewal. (After July 1, 2027, forbearance is capped at nine months in a 24-month period.)
General forbearance is also sometimes called discretionary forbearance because your loan servicer gets to choose whether or not to approve your request.
You can request general forbearance if you’re unable to make your monthly payments due to:
• Financial difficulties
• Medical expenses
• Change in employment
• Other reasons your loan servicer will accept
Mandatory forbearance is not at the discretion of your loan servicer, and can be granted if you meet any of the following requirements:
• You’re serving in a medical or dental internship or residency program and meet specific requirements.
• The total amount you owe on all of your loans is 20% or more of your gross monthly income.
• You’re serving in an AmeriCorps position for which you’ve received a national service award.
• You’re a teacher and qualify for teacher loan forgiveness.
• You qualify for partial payments on your loans through the U.S. Department of Defense Student Loan Repayment Program.
• You’re a member of the National Guard and have been activated by a governor, but don’t qualify for the military deferment.
How Interest Accrues During Payment Pauses
During a student loan deferment, interest continues to accrue on most federal loans, including Direct Unsubsidized Loans and PLUS Loans, even though payments are temporarily paused. Only certain loans — like Direct Subsidized Loans — avoid interest buildup during deferment. If unpaid, any accumulated interest may capitalize at the end of deferment, increasing your total loan balance.
If you enter forbearance, interest will continue to accrue even though payments are paused. Once the forbearance period ends, you’ll repay that accrued interest through your regular monthly payments. For most federal loan types, this interest does not capitalize when forbearance ends.
Private Student Loans
While the options and requirements for these programs are clear on federal student loans, they can be a little trickier with private student loans. That’s because there are so many different private student lenders, and each has its own policy and criteria for determining eligibility.
How to Request Deferment or Forbearance With a Private Lender
Requesting deferment or forbearance with a private lender typically involves contacting your lender directly to explain your situation and ask about available hardship options. Unlike federal loans, private lenders do not offer standardized programs, so the process may require submitting financial documents, proof of hardship, or a formal application.
Limitations and Varying Policies by Lender
Private student loan deferment and forbearance options vary widely by lender, and not all lenders offer both. Some may grant only short-term relief, limit the number of months you can pause payments, or require continued interest payments during the pause. Interest almost always continues to accrue on private loans, which can increase your total cost over time.
Because policies differ so much, borrowers should carefully review their loan agreement, ask the lender about specific terms, and compare options before committing to any repayment pause.
How Deferment and Forbearance Can Affect You
Both deferment and forbearance can offer temporary relief when you’re struggling to make payments, but they also come with trade-offs. Understanding their potential effects on your credit and long-term repayment goals can help you decide whether they’re the right option.
Impact on Credit Score and Loan Forgiveness
Deferment and forbearance typically do not hurt your credit score as long as your loans are in good standing when you request the pause. Payment activity during these periods is usually reported as current, which helps you avoid the negative credit impact of missed or late payments.
That said, if you miss a payment while you’re waiting for your deferment or forbearance request to get approved, it may hurt your credit. At 90 days overdue, your lender can report the missed payment(s) to the credit bureaus.
These pauses can also affect your progress toward loan forgiveness. With federal programs like Public Service Loan Forgiveness (PSLF), only months in active repayment count toward the required total, meaning time spent in deferment or forbearance generally doesn’t advance you toward forgiveness. This can extend the number of years you stay in repayment.
What If You Don’t Qualify to Pause Student Loan Payments?
Depending on your lender and situation, you may not be eligible for deferment or forbearance. If this happens, there are a couple of options to consider.
Income-Driven Repayment Plans
If you have federal student loans, it may be possible to reduce your monthly payment by enrolling an income-driven repayment plan.
If you qualify, you can decrease your monthly payment to a percentage of your discretionary income. It won’t stop your loan payments altogether, but it can help make them more affordable.
Refinancing Your Student Loans
Whether you have federal or private loans, you can opt to refinance your student loans. Refinancing could help you save money by reducing your monthly payment, either by securing a lower interest rate or lengthening the repayment term. Note that you may pay more interest over the life of the loan if you refinance with an extended term.
You may also be able to switch to a different lender that offers hardship programs or other support if you’re having trouble making payments.
Keep in mind that refinancing federal loans with a private lender will cause you to lose certain benefits, including income-driven repayment options and access to federal loan forgiveness programs. Use a student loan refinancing calculator to see if a refinance could help you.
Budgeting and Financial Counseling Options
If you can’t pursue an income-driven repayment plan or student loan refinancing, take a closer look at your budget and seek financial counseling to help you stay on track. A detailed budget allows you to identify unnecessary spending, prioritize essential expenses, and free up money for loan payments.
Nonprofit credit counseling agencies can also provide personalized guidance, helping you create a manageable repayment strategy, negotiate lower interest rates on other debts, or explore hardship programs you may not know about.
Determine If Pausing Student Loan Payments Is Right for You
Before requesting a pause on your student loan payments, it’s important to evaluate whether this step supports your long-term financial goals.
• Can I afford my monthly payments without sacrificing essential expenses like housing, food, or healthcare?
• Am I facing a temporary financial hardship that will realistically improve in the near future?
• Will pausing payments cause interest to grow in a way that makes repayment more expensive later?
• Do I qualify for an income-driven repayment plan that could lower my payments without fully pausing them?
• How will postponing payments affect my progress toward loan forgiveness (if applicable)?
• Do I have other high-interest debts that should take priority right now?
• Will pausing payments help relieve financial stress, or will it delay necessary budgeting changes?
• Am I prepared for the payment amount I’ll owe when the pause ends?
Answering these questions can help you decide if pausing your student loan payments is right for you or if there’s a better alternative.
The Takeaway
Pausing student loan payments is possible through deferment and forbearance options, both for federal and private loans. While these can provide temporary relief, it’s important to understand the implications, such as the continued accrual of interest on unsubsidized federal and most private loans. As an alternative, explore income-driven repayment plans or refinancing your student loans.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
Can pausing student loan payments hurt your credit?
Pausing student loan payments through deferment or forbearance typically doesn’t hurt your credit if you arrange it properly with your lender. However, if you pause without authorization or miss payments, it can negatively impact your credit score and lead to other financial consequences.
Do interest rates increase during deferment or forbearance?
Interest rates do not increase during deferment or forbearance, but interest may continue to accrue, depending on the type of loan. For subsidized federal loans, interest is paid by the government during deferment. For unsubsidized loans and private loans, interest accrues and can capitalize, increasing the total debt.
How long can you pause student loan payments?
You can pause student loan payments for up to three years through deferment, and forbearance typically allows pauses of up to 12 months at a time, with a maximum of three years. However, interest may continue to accrue during these periods. Also, starting July 1, 2027, forbearance limits will change to nine months at a time per 24-month period.
What are alternatives to pausing student loan payments?
Alternatives to pausing student loan payments include income-driven repayment plans, which adjust your monthly payment based on your income, and student loan refinancing. Refinancing with a private lender could allow you to reduce payments or interest, but you will lose access to federal protections and benefits.
Can you pause private student loans like federal loans?
Private student loans can be paused, but the terms are set by the lender and may differ from federal loans. Some lenders offer deferment or forbearance options, but interest typically continues to accrue, and the duration and eligibility criteria vary. Check with your lender to inquire.
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