# Deferment

*Borrowing & Credit — Finicade finance glossary*

Deferment postpones payments on a loan for a qualifying reason — study, unemployment, military service — sometimes with the interest subsidised.

Deferment postpones payments on a loan for a qualifying reason — study, unemployment, military service — and on some subsidised student loans the government pays the interest during the pause, which is the feature that distinguishes it from forbearance. Where interest isn't subsidised, deferment and forbearance are economically similar and both grow the balance. Deferment usually requires you to qualify and apply, rather than simply asking.

**Also known as:** loan deferment, deferred payments

**Related terms:** [Forbearance](https://finicade.com/glossary/forbearance), [Student Loan](https://finicade.com/glossary/student-loan), [Loan Modification](https://finicade.com/glossary/loan-modification), [Delinquency](https://finicade.com/glossary/delinquency)

Source: https://finicade.com/glossary/deferment