During a deferment, you are allowed to temporarily postpone payments on your loan, and no interest accrues. You might apply for a deferment, for instance, if you planned to attend graduate school or enter an organization such as the Peace Corps, or if you were unemployed for an extended period. For further details, see the Deferments and Forbearance section. Forbearance is an alternative for borrowers not eligible for a deferment. During forbearance, your loan payments are postponed or reduced for a limited time.
Interest continues to accrue.
For further details, see the Deferments and Forbearance section.