Both let you temporarily pause or reduce federal student loan payments, but deferment is preferable when you qualify — subsidized loans don't accrue interest during deferment. Forbearance is a fallback; interest keeps accumulating for all loan types.
When you can't make your federal student loan payments, the federal government gives you two structured options to pause: deferment and forbearance. Both stop the requirement to pay, but they treat interest differently — and that difference can add thousands of dollars to your balance if you choose the wrong one or stay in the status too long. The Federal Student Aid office explains both programs. For most borrowers, an income-driven repayment plan is a better long-term option than either — exhaust federal repayment options before pausing.
Deferment allows you to temporarily stop making payments if you meet one of several qualifying conditions — enrollment in school at least half-time, unemployment, economic hardship, active military duty, or a few others. The critical advantage: interest does not accrue on subsidized federal loans during a deferment period. Unsubsidized loans and PLUS loans still accrue interest, but the government effectively covers it on the subsidized portion. Qualifying conditions are set by statute and reviewed by your loan servicer.
Forbearance is available even when you don't meet deferment criteria — financial difficulty, medical expenses, change in employment. However, interest accrues on all federal loan types (subsidized and unsubsidized) during forbearance. That accrued interest can capitalize (be added to your principal) when forbearance ends, which increases what you owe. See studentaid.gov on forbearance for the full list of types and conditions.
Before requesting deferment or forbearance, evaluate whether an income-driven repayment plan would serve you better. IDR plans cap your monthly payment at a percentage of discretionary income — sometimes as low as $0 per month — and a $0 IDR payment still counts toward forgiveness timelines and doesn't cause interest to capitalize the way forbearance can. The CFPB also provides guidance on managing student loan repayment.