Which type of payment option postpones the repayment of principal for a certain time period?

Question

Quizplus · Accepted Answer

Deferment allows the borrower to postpone both principal and interest payments for a certain time period, which provides temporary relief from making payments while the borrower is experiencing financial hardship such as unemployment, military deployment, or returning to school. Student loan refinancing and forbearance do not postpone the repayment of principal for a certain time period, instead, they may affect the interest rate, monthly payments or may temporarily pause payments but interest still accrues.

Which Type of Payment Option Postpones the Repayment of Principal