what is deferment
Deferment ; Deferment What is deferment? Deferment is an agreement between a lender and a borrower to temporarily suspend debt payments. Young people with large student loan debts and low or no income are frequently granted loan deferments. Under a student loan deferment, interest is frozen and is not added to the balance. Forbearance is a similar suspension of debt payments, although interest continues to accrue on the principal balance.