Question

Compare deferred payment plans for purchases and school loans.

Answer 1

Deferred payment plans are payment options that allow you to delay a payment until a later date.

In the case of purchases, deferred payments usually come with credit. Credit refers to an agreement in which a person buys something, but promises to pay at a later date. Most of the time, this credit carries interests, which means that the person will end up paying more than he spent initially. This is usually the case with most general purchases. A common example of this is that of a credit card.

On the other hand, a deferred payment plan for a school loan is usually more flexible. Such deferred payments tend to apply either for a set period of time, or for as long as the person fulfills the necessary requirements. Moreover, deferred payments on student loans allow payers to find a job and establish themselves without having to worry about paying student loans immediately. This method is mostly used to help students transition into a working life, and they tend to take income into account.