With all the uncertainty surrounding student loans right now due to factors like President Donald Trump’s One Big Beautiful Bill and his order to begin shutting down parts of the Department of Education, many borrowers are considering pausing their payments until further notice. But what exactly does pausing your student loans mean? And does doing so impact your credit score? Keep reading for the answers to these questions—and more.
What does pausing your student loans mean?
Pausing your student loans is an option for borrowers who want to temporarily stop payments because they can no longer afford them or because they need to put that money elsewhere. There are typically two categories of student loan pauses—deferment and forbearance—and the outcomes of each are very different.
“Student loans can be deferred in the event the borrower is experiencing financial hardship, enrolled in school part-time, unemployed or for qualifying military services. The benefit of a deferment is that interest does not get charged, so you will not owe more in the long run as you would with a forbearance,” Andrea Woroch, a consumer finance and savings expert, tells Woman’s World. “When it comes to requesting forbearance, it’s important to know that interest will continue accruing and will be added to your loan amount, with interest then being compounded each month, so the total amount you owe will be more in the long run.”
How to pause your student loans
If you do find yourself needing to pause your student loans, Woroch advises contacting your lender to find out about your options to determine which will work best for your financial situation.
Other experts like Courtney Alev, consumer financial advocate at Credit Karma, say just because you can pause your student loans doesn’t mean you should. Instead of stopping payments, she advises looking into other options.
“If you’re struggling to make student loan payments, start by reaching out to your loan servicer to explore options like consolidation or income-driven repayment plans. They can help guide you through some potential solutions,” Alev says. “Deferment or forbearance, otherwise known as ‘pausing’ payments, are also options, and while certainly a better route than risking missing payments or defaulting, this should only be considered as a last resort.”
Does pausing your student loans affect your credit score?
For those needing to pause their student loans, Alev has good news: “Deferment or forbearance won’t directly affect your credit score, but remember that both of these options may increase what you pay over the term of the loan because interest continues to accrue each day.”
“Maintaining good credit plays a critical role in so many aspects of life, from renting a home to landing a job, which is why it’s so important to stay on top of your student loan payments,” she says. “One of the best things you can do is get informed early: understand your loan terms, check your loan status regularly and reach out to your servicer with any questions. Having a clear path forward and staying proactive can help protect your credit and set the foundation for a stronger financial future.”
