Deferment
A period during which loan payments are postponed, sometimes with interest also paused, typically arranged in advance under specific loan terms.
Deferment is similar to forbearance but is often built into a loan’s original terms for a specific situation, like a startup period at the beginning of a loan, rather than negotiated later in response to a hardship.
Whether interest continues to accrue during deferment depends on the specific loan agreement, which is an important distinction from forbearance, where interest almost always continues to build.
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