What is deferment?
Deferment is a period of time in which your payments are temporarily postponed. You have to meet specific criteria to qualify for deferment. To be eligible for a deferment your loans must be in repayment and you must provide specific documentation.
Does interest accrue during a deferment?
What is forbearance?
Forbearance is another tool you can use when you have trouble making payments. If you are willing but financially unable to make your scheduled payments and do not qualify for a deferment, CornerStone may allow you to temporarily reduce the payment amount or temporarily postpone your payments. During forbearance you are responsible for the interest that accrues on both subsidized and unsubsidized loans. There is no fee to receive forbearance.