What's a Forbearance?

A forbearance is a period of time in which you are not required to make payments on your Federal student loans due to financial hardship. A forbearance is different than a deferment because it does not require you to be in a qualifying period (inschool, unemployed, fellowship, etc..), but instead is given to you at your lender's discretion.

During a forbearance period, interest will continue to accue on both your subsidized and unsubsidized loan balances. If unpaid, the interest will be capitalized (added to your loan balance) at the end of your forbearance.

In all cases, you should try to obtain/qualify for a deferment prior to requesting a forbearance! In a deferment period the government will pay your interest on subsidized federal student loans - saving you money!

Some Reasons for a Forbearance:

• unable to pay due to poor health or other unforeseen financial/personal problems
• serving in a medical or dental internship or residency
• serving in a position under the National Community Service Trust Act of 1993 (Stafford only)
• obligated to make payments on certain federal student loans that are equal to or greater than 20 percent of your monthly gross income
• due to national disaster or military mobilization
• while maintaining eligibility for teacher loan forgiveness or child care provider forgiveness programs

This is a list of most common reasons for a forbearance and is not all-inclusive. Forbearances vary based on lender and are in many cases given at the lender's discretion. Talk to your lender or loan servicer to determine if you are eligible/qualify for forbearance.