Because of the way private student loan programs work, interest fees will accrue on your total loan amount while you are completing your degree in school, in your grace period, and during periods of deferment and forbearance. A grace period is the period of time after you finish your education — typically six-months — after you finish your education before you must begin making loan payments.
Deferment means the period of time — typically three years for student loans — where you can make loan payments but do not have to pay the accrued interest quite yet.
Forbearance is a period of time that you can request to suspend or lower the amount of each monthly payment if you need to — typically around 12 months or less for a student loan.
Keep in mind that your loan may still accrue interest while it is in forbearance.
To get a forbearance, you will most likely need to complete a form and submit it to your loan servicer.
So, during the grace period, and during a deferment or a forbearance, you are still being charged interest that you will have to pay back, in addition to your loan.
This means that as your balance grows, you’ll be charged more and more.
Beginning to make payments towards your loan while you are in school, or during the grace period, will make a small dent in the overall total amount you have to start paying once the grace period ends.
This way, you hopefully will not need to ask for a deferment or a forbearance.