Loan Deferment

A loan deferment allows a borrower to temporarily halt making a loan payment (although interest continues to accrue). In order to do this, borrowers need to contact the lender to see if this is possible. If the lender allows the borrower to skip a payment, there may be a small charge to do this. The payment, however still has to be made and, in most cases, the missed payment is added to the end of the loan, extending the loan term. Most lenders require borrowers to sign a contract that spells this out before allowing this to happen.