Many student loan borrowers are now stopping their monthly payments. The number of people doing this has increased a lot. More than a quarter of the 40 million federal student loan borrowers paused their payments in the third quarter of 2025. This is more than double compared to the same time in 2024.
Ways to Pause Your Payments
The U.S. Department of Education gives two main ways to stop payments: deferment and forbearance. Both options let you pause payments if you cannot pay. But they have different rules about interest and time limits.
Why Pausing Payments Can Help
Stopping your payments for some time can prevent bigger problems. If you miss payments, your credit score may drop. The government can also take your wages or tax refunds. Extra collection costs may also be added to your loan.
If you are struggling to pay, you should ask about these options. You can contact the Education Department or your loan servicer to apply.
Deferment May Stop Interest
The main difference between deferment and forbearance is interest. In deferment, some loans do not gain interest. If you have subsidized Direct Loans, the government often does not charge interest during deferment.
Here are some types of deferment:
| Type of Deferment | Who Can Get It | Interest Charged? | Limit |
| Rehabilitation Training | People in training or treatment | No (if subsidized loans) | Varies |
| Cancer Treatment | Cancer patients in treatment | No (for all loan types) | During treatment |
| Unemployment | People without a job | No (if subsidized loans) | 3 years |
| Economic Hardship | Low income or public assistance | No (if subsidized loans) | 3 years |
The number of people in economic hardship deferment rose from 50,000 in 2024 to 100,000 in 2025.
Forbearance Can Be Expensive
Forbearance usually adds interest on all loans. This means your total debt can grow. On average, a borrower with $39,000 in debt at 6.7% interest can add about $219 each month in forbearance.
Forbearance can still be better than missing payments or defaulting. But it is not free. Right now, borrowers can use general forbearance for up to three years. From July 1, 2027, this limit will change to nine months every 24 months.
Not a Long-Term Solution
Deferment and forbearance are only short-term fixes. They do not remove debt. They only give you time.
A better way is to find a repayment plan you can afford. Income-driven repayment (IDR) plans can make your monthly bill very low, even $0 in some cases. IDR also counts toward loan forgiveness. Pausing payments for too long delays that progress.
FAQs
How long can I pause payments?
Usually up to three years, but rules may change in 2027.
Does deferment always stop interest?
No, only some loans like subsidized loans.
Is forbearance bad?
It adds interest, but better than default.
Can I still get forgiveness if I pause?
Yes, but pausing may slow progress.
Who should I contact to pause payments?
Your loan servicer or the Education Department.
