What is deferment? A deferment means you may postpone making payments on your loan under specific conditions. The federal government pays the interest charged on a Direct Stafford/Ford loans (Direct subsidized loans) and Direct subsidized consolidation loans during a deferment period. You are responsible however for the interest charged on all other Direct loans during a deferment period. You may either 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 web site (http://www.dl.ed.gov/) for a complete listing.