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A deferment allows you to temporarily stop making payments on your federal student loans. You are not charged interest on subsidized loans during deferment. Interest will continue to be charged on your unsubsidized loans and PLUS loans.
A postponement of payment on a loan that is allowed under certain conditions and during which interest does not accrue on
- Direct Subsidized Loans,
- Subsidized Federal Stafford Loans,
- Federal Perkins Loans.
All other federal student loans that are deferred will continue to accrue interest. Any unpaid interest that accrued during the deferment period may be added to the principal balance (capitalized) of the loan(s).