What is deferment?

Deferment Definition: A deferment is a pause or temporary stop of payments to provide relief for various reasons. You can receive a deferment on student loan payments, for example, if you’re re-enrolled into school or experience a decrease in income or financial loss.

Some financial institutions may defer payment or the interest on a loan if a customer meets specific criteria to qualify for temporary relief. The length of time that a deferment continues varies considerably based on the loan provider, whether it’s a public or private loan, and student or income status. Deferments allow people to “catch up” on other financial commitments before resuming regular payments.

Jul 30 - Comparewise Business Loan Banner

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