Student loan repayment can be exhaustively difficult. There are many times when you may not have the job you thought you had, or life gets in the way. Repaying your student loans might seem impossible. The good news is a few strategies are available to help you get caught up or put off repaying the debt for some time. Understanding what these are and which apply to your situation is critical to making the right decision for your financial future.

The two main options are student loan deferment and student loan forbearance. Here's what you need to know.

What is Student Loan Deferment?

Student loan deferment is the ideal option for longer-term situations. You get a break in the repayment of your student loans to delay payments you cannot make right now. With deferment, interest will accrue throughout that time, whether you make loan payments or not.

Individuals are typically only granted deferment under specific circumstances. If you qualify, you can have it implemented for up to three years. During that time, you do not have to repay your loan every month.

Types of Deferment Programs Available

The Federal Student Aid website can help you to get specific information about your situation and whether you can defer your loan. There are many qualifying situations. Some of them include the following:

• Cancer treatment deferment: You may obtain this deferment for the time you undergo cancer treatment and six months after it.
• Economic hardship deferment: This is calculated based on your financial need and whether you receive need-based care like welfare. If you are working full-time but earning up to 150% of the poverty guideline for your area or are serving in the Peace Corps, you may qualify for this deferment.
• Graduate Fellowship Deferment: You may be able to defer your student loan repayment while attending an approved graduate fellowship program, which will provide you with financial support as you pursue your graduate studies.
• In-school Deferment: If you are currently enrolled at least half-time in higher education or a career-oriented school, you may be able to defer your loan.
• Military Service Deferment: For those who are on active duty in the military service during a time of war, military operation, or natural emergency, a deferment is available.
• Rehabilitation Training Deferment: You may qualify for a deferment if you are entering into an approved rehabilitation program that helps you in areas of career training, mental health, substance abuse, or other areas.

Other opportunities for deferment may also exist. Each sets specific rules for qualifications.

What is Student Loan Forbearance?

Student loan forbearance is available to those who may not qualify for deferment of their loan or in situations where the financial limitations you face are for a shorter period. With student loan forbearance, you can pause your repayments for up to 12 months. You can do that with a three-year cap.

Interest will still grow on your debt during this time, increasing your principal balance. You may seek forbearance for many reasons, but qualifying is the first step.

Types of Forbearance Programs Available

There are two main types of forbearance available for federal student loans.

• General forbearance: This is the most common type. It is a decision based on the loan servicer's guidelines and approval. It is often sought when there is a financial need, such as when you have significant medical expenses or are changing jobs. If you are having a hardship, you can ask for a forbearance from your lender.
• Mandatory forbearance: In this situation, you may receive forbearance if you are in a medical or dental internship or residency. It may also apply in situations where you are serving in the AmeriCorps. It may also apply if you qualify for teacher loan forgiveness programs or pay more than 20% of your monthly income toward your student loans.

Pros and Cons of Deferment and Forbearance

There are many factors to consider when it comes to these loan programs.

Pros of deferment and forbearance:

• If you qualify, You can take a break from loan repayments. That gives you some time to get caught up.
• Interest on your loans will continue to grow over time, which means you'll ultimately owe more money on the loan.
• Forbearance is a short-term break, whereas deferment is typically longer.

Cons of deferment and forbearance:

Your credit report will include a note about forbearance. However, it won't affect your credit score unless you make the required payments late or miss them entirely.
You may be told no, especially to deferment programs, if you cannot prove financial hardship for the loan break.

Applying for Deferment or Forbearance Programs

You can get more insight into your specific qualifications for deferment and forbearance through your federal government student loan account – at FederalStudentAid.gov.

You can turn to your loan servicer to learn about available programs for your specific needs. They will consider your application and discuss the options with you. These are often automatic processes, but you'll still need to meet the qualifications to determine the best situation.