You can request a shorter term. Certain deferment options are not available with consolidation loans. Forbearance can be requested when you are experiencing difficulty in making your monthly payments and do not qualify for a deferment. You will continue to receive monthly statements that will show the interest as it accrues on your account. You can make monthly interest payments, make a larger interest payment towards the end of your forbearance or allow the interest to capitalize when the forbearance ends.
Capitalization is when the unpaid interest is added to the principal.
ALPS and TREE loans are not eligible for forbearance. Deferment Forms . The Government pays the accrued interest on Subsidized loans during periods of deferment. You are responsible for the accrued interest on Unsubsidized Stafford, SLS, PLUS and Unsubsidized Consolidation Loans. There are many deferment types available to you, depending on your situation.