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What is Loan Deferment?
Answer:
The most common type of loan deferment, and the type that many people are familiar with, is the deferment of student loans.  Basically, deferring a loan involves putting off the payments for a set time period, with no penalties.  Student loans are often deferred when a student returns to school.

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What is Loan Delinquency?
Answer:
Loan delinquency is one step before defaulting on a loan.  Whether it be a mortgage, a car loan, or a student loan, it is extremely important that the borrower make payments on time.  Failure to do so can not only lead to late fees, but also put a stain on the borrower’s credit report.

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What is Loan Default?
Answer:
When a person borrows money, he or she typically signs a loan agreement, which states the terms of the loan.  This contract includes the interest rate, monthly payments, and length of the loan.  If the borrower fails to repay a loan according to the terms agreed upon, he or she is in loan default.

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