Forbearance on student loans means you can temporarily pause or reduce your monthly payments for a set period, usually up to 12 months. It is an option for borrowers facing financial hardship, such as job loss, medical expenses, or other emergencies. While forbearance stops the need for payments, interest continues to accrue on most loans, which can increase your total debt.
How Does Student Loan Forbearance Work?
When you enter forbearance, your loan servicer agrees to let you stop making payments or make smaller payments for a limited time. You must request forbearance from your loan servicer, and they will review your situation. If approved, you will not be required to make payments during the forbearance period, but interest will still build on your loan balance.
For federal student loans, forbearance is typically granted in 12-month increments, and you can request it for up to three years total. For private loans, terms vary by lender, so you need to check your specific loan agreement.
Types of Forbearance
There are two main types of forbearance for federal student loans: general forbearance and mandatory forbearance. General forbearance is granted at the servicer’s discretion for reasons like financial hardship or illness. Mandatory forbearance is required by law for certain situations, such as serving in a medical or dental internship, or having monthly payments that exceed a certain percentage of your income.
Here are common situations where you might qualify for mandatory forbearance:
- You are serving in a medical or dental internship or residency.
- You are a member of the National Guard and have been called to active duty.
- You are teaching in a program that qualifies for teacher loan forgiveness.
- Your total monthly student loan payments are 20% or more of your total monthly income.
Forbearance vs. Deferment: What’s the Difference?
Many borrowers confuse forbearance with deferment, but they are different. Deferment also allows you to pause payments, but for certain types of loans, interest does not accrue during deferment. For example, subsidized federal loans do not accrue interest during deferment, but unsubsidized loans do. In forbearance, interest accrues on all loan types, including subsidized loans.
Here is a quick comparison:
| Feature | Forbearance | Deferment |
|---|---|---|
| Interest accrual on subsidized loans | Yes, interest accrues | No, interest does not accrue |
| Interest accrual on unsubsidized loans | Yes, interest accrues | Yes, interest accrues |
| Maximum duration (federal) | Up to 3 years total | Varies by loan type |
| Eligibility | Financial hardship, discretionary | Specific conditions like enrollment or unemployment |
How to Apply for Forbearance
To request forbearance, you must contact your loan servicer directly. You can usually do this online, by phone, or by submitting a paper form. You will need to explain your situation and provide documentation, such as proof of income or medical bills. For general forbearance, the decision is up to the servicer, but for mandatory forbearance, you must meet specific criteria.
Here are some actionable tips for applying:
- Gather all necessary documents before contacting your servicer.
- Ask about alternative options like income-driven repayment plans.
- Understand that interest will continue to accrue and capitalize (be added to your principal) after forbearance ends.
- Keep records of all communication with your servicer.
Pros and Cons of Forbearance
Forbearance can provide immediate relief, but it is not without drawbacks. On the positive side, it can help you avoid default and keep your credit score intact. It also gives you time to get back on your feet financially. However, the interest that accrues during forbearance will increase your total loan balance, meaning you will pay more over the life of the loan.
Consider these pros and cons before choosing forbearance:
- Pro: Temporary relief from payments.
- Pro: Avoids default and late fees.
- Con: Interest continues to accrue.
- Con: Your loan balance may grow significantly.
Alternatives to Forbearance
Before requesting forbearance, explore other options that might be less costly in the long run. Income-driven repayment plans adjust your monthly payment based on your income and family size, and some plans may result in a payment as low as $0. Another option is loan consolidation, which can extend your repayment term and lower your monthly payment.
If you have private student loans, contact your lender to discuss options like temporary payment reduction or refinancing. Always ask about the long-term impact before making a decision.
Important Considerations for 2026
As of August 2026, the federal student loan payment pause that was in effect during the COVID-19 pandemic has ended. Borrowers are expected to make regular payments, and forbearance remains available for those who qualify. Be aware that interest rates and loan terms can change, so always check the current information on the official Federal Student Aid website.
In summary, forbearance is a useful tool for temporary financial relief, but it comes with the cost of accruing interest. Always weigh the pros and cons, and consider alternatives like income-driven repayment. If you decide to apply, contact your loan servicer as soon as you anticipate difficulty making payments.
Frequently Asked Questions
What is the difference between forbearance and deferment?
Forbearance pauses payments but interest always accrues, even on subsidized loans. Deferment also pauses payments, but interest does not accrue on subsidized loans during deferment.
How long can I stay in forbearance?
For federal student loans, forbearance is typically granted for up to 12 months at a time, for a maximum of three years total. Private loan forbearance terms vary by lender.
Does forbearance hurt my credit score?
Forbearance itself does not directly hurt your credit score, but it is reported to credit bureaus. However, missing payments before entering forbearance can negatively affect your score.
Can I get forbearance on private student loans?
Yes, many private lenders offer forbearance, but terms and eligibility vary. You must contact your lender directly to request it and understand the specific conditions.
Will I still owe interest during forbearance?
Yes, interest continues to accrue on all loans during forbearance, and the unpaid interest may be added to your principal balance when forbearance ends.
