The Pros + Cons of Deferment

Remember our handy dandy Chip-tionary? The one where we learned a bunch of weird student loan terms, like deferment. Well today we’re going to dive into what deferment really means, and the pro’s and con’s that come with it.

Need a refresher? We gotchu.

Deferment: A temporary postponement of payment on a loan that is allowed under certain conditions. Depending on the type of loan you have, interest may still accrue during deferment.

It’s important to understand the pro’s and con’s when making any big decision. So we’ve broke it down for you!  


Deferring your student loans could be the break you need to catch up on current bills, and get yourself financially stable. Having your student loan deferred may seem like a blessing, especially if you’re living paycheck to paycheck. However, there’s a lot that goes into it, so make sure you read the fine print!  


During a loans deferment period interest may or may not accrue. It is extremely important to check your loan terms to determine whether a loan deferment means you will owe more interest, than if you do not defer the payment. Since student loans are federal loans, they do not accrue interest during the deferment period, but private loans typically do. So double check! If you just don’t want to start paying back your student loans yet, if you’ve let your frustration get the best of you, or if you haven’t fully explored all of your repayment options; these are not valid reasons to defer your student loan payments.  

To help you figure out the best payment plan for you and your loans, we’ve inserted a student loan calculator below! You can thank us later.

There is no right or wrong reason for when to defer your student loans. The best thing to do is to talk to your service or provider, truly understand the pros and cons, and consider all of your options and alternatives.