Final answer:
Deferment is an important aspect of student loans because it allows borrowers to postpone making payments under certain circumstances. It can be beneficial for students who are still in school or experiencing economic hardship. However, it is important to remember that deferment does not eliminate the loan obligation.
Step-by-step explanation:
Deferment is an important aspect of student loans because it allows borrowers to postpone making payments on their loans under certain circumstances. This can be beneficial for students who are still in school, as they may not have the means to make loan payments while they are studying. For example, if a student is enrolled at least half-time in an eligible postsecondary institution, they can qualify for an in-school deferment and delay their loan repayment until they graduate or drop below half-time enrollment.
Deferment can also be useful for borrowers who are experiencing economic hardship, such as unemployment or financial difficulties. During a deferment, interest on subsidized loans does not accrue, which helps prevent the loan balance from increasing. Additionally, deferment can help borrowers avoid defaulting on their loans, as they are not required to make payments during this time.