 TITLE: Loan Forbearance: How to Know if It’s Right For You CONTENT: What's the Difference Between Deferment and Forbearance?\n--------------------------------------------------------\nThe other way to postpone student loan payments is with a deferment. It works much the same way as a forbearance, but the biggest difference concerns interest.\nIf the loans are subsidized, the Education Department picks up the tab for the interest that accrues while you're enrolled in school at least half-time, for the grace period after leaving school and during a period of deferment.\nIf any portion of your student loans is subsidized, it's best to see if you can get a deferment before pursuing a forbearance.\nDeferments for economic hardship can be tough to get, though. To qualify, you'll have to be receiving government assistance or be unemployed. If you're working, you'll need to demonstrate that your monthly income is less than 150% of the poverty guideline for your family's size and the state you live in. The rules for a forbearance aren't nearly as stringent. END