Deferment Period

A deferment period refers to a specified duration during which a borrower is allowed to temporarily postpone making payments on a loan without accruing penalties or affecting their credit standing. This period is agreed upon and outlined in the loan agreement or terms of the lending institution. The primary purpose is to provide borrowers with temporary relief from making loan payments when facing temporary financial challenges or pursuing further education.

It’s important to note that while payments are deferred, interest may continue to accrue on the loan balance.