How Student Loan Deferment vs Forbearance Changes Your Balance

In this episode of Debt Payoff with Fexingo, Lucas and Luna break down the critical difference between student loan deferment and forbearance—and why choosing the wrong one could silently inflate your balance by thousands. Using a concrete example of a $35,000 loan at 5.5% interest over three years, they show how interest capitalization in forbearance can add over $5,700 to your principal, while deferment on a subsidized loan keeps your balance flat. They also cover what happens if you have unsubsidized loans, how the payment pause changed the rules, and a quick tip to check your loan type before making a call. Plus, a light ask at the end about keeping the show ad-free. #StudentLoans #Deferment #Forbearance #InterestCapitalization #LoanBalance #PersonalFinance #DebtPayoff #FederalStudentLoans #SubsidizedLoans #UnsubsidizedLoans #FSA #LoanServicer #CreditScore #FinancialLiteracy #Finance #FexingoBusiness #BusinessPodcast #DebtStrategy Keep every episode free: buymeacoffee.com/fexingo