What exactly is a student loan deferment? What exactly is subsidized student loans?

What exactly is a student loan deferment? Assuming that you take out a student loan and it is deferred for 5 years, does that mean the bank will not initiate payment requirements until after the deferment period (4 years)? Or does that mean that the bank has already initiated the monthly payments but the payment is added onto the principal? Also, does interest collect during the deferment period or after the deferment period?

I'm having trouble understanding what a subsidized student loan is. From what I have read, the banks start collecting payments from the principal loan amount, except that another party pays the monthly payment for a variable amount of time. When the subsidized period is over, must I repay the subsidized amount as well? How does that work?

What exactly is a student loan deferment? What exactly is subsidized student loans?

Deferment is postponement of payment. A Stafford student loan whether it is Subsidized or Unsubsidized enters repayment 6 months after becoming less than a half time student. So if you are in school for 4 years, yes, payment is postponed during that time.

Subsidized Stafford student loans-the Department of Education pays the interest due on the loan during periods of in school deferment to the lender.

Unsubsidized Stafford loans-you are responsible for the interest once the loan has been disbursed. You can pay this as it accumulates or you can let it add on to your loan balance and it will be factored into your payments when you enter repayment.

After you have left school and if you have the need for another type of deferment it will depend on the type of deferment as to whether or not you would be responsible for the interest or the Department of Education would be responsible.