What is deferment? A deferment means you may postpone making payments on your loan under specific conditions. Interest will continue to be charged during times of deferment. You may elect to pay the interest as it accrues or allow it to accumulate and be capitalized when the deferment period ends. There are several deferment types and reference should be made to the Direct Loan Servicing Center website (http://www.dl.ed.gov/) for a complete listing.