It may depend on the types of loans you have. A deferment means you are not legally in repayment and the lender can't ask for payment and more importantly: the lender can charge the gov't for the interest on your sub loans and also get a higher bit of interest on top (special allowance). Deferments in the pure sense of the word (meaning federal loans) are always certified by a 3rd party outside you and the lender to avoid fraud. Think of them as papers that allow the lender to bill the feds and give you (the individual) the money-- it's all about fiscal oversight in the system to prevent fraud, waste and abuse. Deferments are also in the best interest of the country and not the individual and if you scroll through the list of reasons I'm paying the interest on your sub (as are you as a taxpayer) they start to make more sense. You may not be eligible for a deferment if your salary and debt aren't within the range for eco hardship deferment (as well as there is a 36 month max for that one and it's going away 2009 and I don't think it will come back). Borrowers who had a loan before 1993 have te right to a deferment for internship/residency but I suspect you aren't that old. So you may be ineligible to defer (loan not considered in repayment).
A forbearance means the loan is legally in repayment but your lender is allowing you to not have to make payments for a certain agreed upon time period and does not report you as being "X" number of days delinquent. A forbearance does not cost the tax payers anything so there is no need for a 3rd party certification but it is at the lenders descretion. To clarify: Repayment is the status of the loan and not indicative of you writing checks. And all your loans are either deferred (legally not in repayment), grace (not in repay) or in repayment (active: you are paying or "not active" in forbearance). They are always one of those 3 categories throughout their life.
If your loans are private (non-fed backed) be aware that there is most likely a limit to the amount of time you may defer (be out of repayment) or forbear (you're in repayment but not writing a check). The contract you signed in regard to that loan should outline the total time for deferment or forbearance they will grant you throughout the length of repayment. Buyer beware on private or alternative loans and know the limits of how long you can avoid paying before you take the money.
Short skinny: call your lenders and discuss what you are doing and ask for their suggestions. Don't just ask for a "deferment" since what they are anwering is "can I defer?" and if you can't, that doesn't mean all is lost. The next question is "may I request a forbearance?" With a forbearance you are demonstrating a willingness to pay but are unable. Do keep in mind that they may look at your income and decide not to grant you the forbearance and they would be within their legal right to expect something, even if it is just interest payments.
A lot of lenders are hurting for cash to make new loans so I tend to think they may be a bit more gung ho to collect than in the past.
Deferments and forbearances are two completely different animals and you not understanding the basic concept is totally normal-- ask me how many dental kids I get from all the other schools who don't have a clue. All they can say is "I can't pay, I don't have a job but I don't care what you call it since I don't realize their is a huge difference." Hope that helped.
