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What is a key distinction between loan deferment and forbearance for federal student loans regarding interest accrual?

A Interest always accrues during both deferment and forbearance.
B Interest typically does not accrue on subsidized loans during deferment, but usually does during forbearance.
C Deferment is only available for private loans, while forbearance is for federal loans.
D Forbearance automatically stops payments, whereas deferment requires a separate application.

✓ Correct Answer: Option B

During deferment on subsidized loans, the government pays the interest. However, during forbearance, interest typically accrues on all loan types (subsidized and unsubsidized), increasing the total loan amount.

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