Student loan forbearance is a temporary pause or reduction of your monthly student loan payments, granted by your loan servicer under specific circumstances. It is a form of relief that can help you avoid default when you are facing financial hardship, medical expenses, or other difficulties. However, unlike deferment, interest generally continues to accrue on your loans during forbearance, which can increase your total balance.
How Does Student Loan Forbearance Work?
When you are granted forbearance, you are allowed to stop making payments or make smaller payments for a set period, usually up to 12 months at a time. Your loan servicer will not report you as delinquent during this period, so your credit score is protected. But interest continues to grow on all loan types, and if you have unsubsidized loans, that interest is added to your principal balance when the forbearance ends.
Forbearance is not automatic; you must request it through your loan servicer. You will need to explain why you need it and provide supporting documents, such as proof of income or medical bills.
Types of Student Loan Forbearance
There are two main categories of forbearance: general and mandatory. General forbearance is available at the servicer’s discretion, while mandatory forbearance must be granted if you meet specific conditions.
| Type | Who Qualifies | How Long |
|---|---|---|
| General Forbearance | Borrowers with financial hardship, illness, or other extenuating circumstances | Up to 12 months, renewable |
| Mandatory Forbearance | Borrowers in medical or dental internship/residency, teaching service, National Guard duty, or those with monthly payments exceeding 20% of income | Up to 12 months, renewable |
How to Apply for Forbearance
To request forbearance, contact your loan servicer directly. You can usually apply online, by phone, or by mail. Be prepared to provide your loan account number and explain your situation. If you are applying for mandatory forbearance, you will need to submit documentation that proves you meet the specific criteria.
Here are some steps to follow:
- Log in to your loan servicer’s website to find the forbearance request form.
- Fill out the form accurately, including the reason for your request.
- Attach any required documents, such as pay stubs, medical bills, or orders for active duty.
- Submit the form and keep a copy for your records.
- Follow up with your servicer to confirm receipt and approval.
Pros and Cons of Forbearance
Forbearance can provide immediate relief, but it is not a long-term solution. Consider the benefits and drawbacks before you apply.
Benefits of Forbearance
Forbearance helps you avoid default and keeps your loan in good standing. It gives you time to get back on your feet without the stress of monthly payments. It also prevents your credit from being harmed by missed payments.
Drawbacks of Forbearance
Interest continues to accrue, which means you will owe more over time. For unsubsidized loans, that interest is capitalized, meaning it is added to the principal, and you will pay interest on that higher balance. Forbearance also extends the life of your loan, so you may be in debt longer.
Forbearance vs. Deferment
Many people confuse forbearance with deferment, but they are different. Deferment is usually better because interest does not accrue on subsidized loans during deferment. Forbearance is often a last resort when you do not qualify for deferment.
| Feature | Forbearance | Deferment |
|---|---|---|
| Interest accrual on subsidized loans | Yes, interest accrues | No interest accrues |
| Eligibility | Broader, based on hardship | Specific, such as enrollment or unemployment |
| Application | Request from servicer | Request with proof of eligibility |
Alternatives to Forbearance
Before choosing forbearance, explore other options that may be less costly. Income-driven repayment plans can lower your monthly payment based on your income and family size. Loan consolidation might extend your repayment term and reduce your payment. Also, check if you qualify for a deferment, as it may be more favorable.
If you have private loans, forbearance terms vary by lender. Contact your private lender to discuss options, but note that interest may accrue at a higher rate.
How Long Does Forbearance Last?
Typically, forbearance is granted for up to 12 months at a time. You can request a renewal, but the total forbearance period is limited to three years for most federal loans. After that, you must find another solution, such as an income-driven plan or loan rehabilitation.
Practical Summary
Student loan forbearance can offer temporary relief when you cannot make payments, but it comes with the cost of accruing interest. Always compare it with deferment and income-driven repayment plans. If you decide to apply, contact your servicer promptly and keep detailed records. Use forbearance sparingly and as a short-term bridge to financial stability.
Frequently Asked Questions
Can I get student loan forbearance if I am unemployed?
Yes, unemployment is a common reason for requesting forbearance. You will need to contact your loan servicer and explain your situation, and you may need to provide proof of unemployment or income loss.
Does forbearance hurt my credit score?
No, forbearance does not hurt your credit score because your loan is considered in good standing during the forbearance period. However, missing payments before you are approved can hurt your score.
How do I apply for student loan forbearance?
You apply directly through your loan servicer, either online, by phone, or by mail. You will need to fill out a forbearance request form and provide supporting documentation for your hardship.
Is forbearance the same as deferment?
No, forbearance and deferment are different. Deferment may not accrue interest on subsidized loans, while forbearance always accrues interest on all loan types.
How long can I stay in forbearance?
For federal loans, forbearance is usually granted for up to 12 months at a time, with a maximum total of three years. You must reapply after each period.
