Student loan forbearance is a temporary pause or reduction of your monthly student loan payments. It is an option for borrowers who are facing financial hardship, medical expenses, or other situations that make it impossible to keep up with payments. Unlike loan forgiveness, forbearance does not erase your debt—you will still owe the full amount, and interest may continue to accrue.
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 set period. This period usually lasts up to 12 months, but you can often renew it if you still need help. During this time, you are not required to pay, but interest may still build on your loan.
For most federal student loans, interest continues to accrue during forbearance. This means your total loan balance may grow while you are not paying. For subsidized loans, interest does not accrue during certain types of forbearance, but for unsubsidized loans, interest always accrues.
Types of Student Loan Forbearance
There are two main categories: general forbearance and mandatory forbearance. General forbearance is granted at the servicer’s discretion for situations like illness or financial hardship. Mandatory forbearance is required by law for specific circumstances, such as serving in a medical or dental internship or residency, or if your monthly payments exceed a certain percentage of your income.
General Forbearance
You may request general forbearance if you have a temporary financial problem, such as job loss, unexpected medical bills, or other expenses. The servicer decides whether to approve it, and you must provide documentation to support your request.
Mandatory Forbearance
Mandatory forbearance is available for specific situations, including:
- Teaching in a program that qualifies for teacher loan forgiveness (for up to 12 months).
- Serving in a medical or dental internship or residency program.
- Having a monthly student loan payment that is 20% or more of your total monthly gross income (for up to three years).
- Being a member of the National Guard or other military service where you are called to active duty.
How to Apply for Forbearance
To request forbearance, you must contact your loan servicer and ask for a forbearance application. You will need to explain why you need it and provide supporting documents, such as medical bills or proof of unemployment. The servicer will review your request and let you know if you qualify.
For federal loans, you can also log in to your account on the Federal Student Aid website to submit a forbearance request online. The process is usually quick, but it is best to apply as soon as you know you will need help.
Forbearance vs. Deferment: What’s the Difference?
Both forbearance and deferment allow you to temporarily stop payments, but they differ in how interest is handled. With deferment, interest does not accrue on subsidized loans, and in some cases, on unsubsidized loans as well. With forbearance, interest almost always accrues on all loan types.
| Feature | Forbearance | Deferment |
|---|---|---|
| Interest accrual on subsidized loans | Yes, except in specific cases | No, for most deferments |
| Interest accrual on unsubsidized loans | Yes | Yes |
| Eligibility | Financial hardship, illness, etc. | Enrollment, unemployment, economic hardship |
| Duration | Up to 12 months at a time, renewable | Varies by type |
In general, deferment is often a better option because it may save you money on interest. However, not everyone qualifies for deferment, so forbearance can be a good backup.
Pros and Cons of Forbearance
Before choosing forbearance, consider both the benefits and drawbacks.
Pros
- Provides immediate relief from monthly payments.
- Can be used for any type of federal student loan.
- May help you avoid default if you are struggling.
- You can apply multiple times if needed.
Cons
- Interest continues to accrue, increasing your total debt.
- It does not reduce your principal balance.
- It may lengthen the time you are in repayment.
- It is not automatic—you must apply and qualify.
Alternatives to Forbearance
Forbearance is not your only option. Consider income-driven repayment plans, which base your monthly payment on your income and family size. These plans can be more affordable in the long run and may even lead to loan forgiveness after 20 or 25 years. You might also qualify for a deferment, which may be better for interest.
If you are struggling with private student loans, forbearance is less common, but some private lenders offer similar options. Contact your lender to see what is available. Always compare the long-term cost of forbearance versus other options before deciding.
Key Takeaways
Student loan forbearance can provide temporary relief when you cannot make payments, but it comes with costs. Interest will likely continue to grow, increasing your total balance. Before applying, explore all alternatives like deferment or income-driven repayment. If you do use forbearance, keep track of your loan balance and plan to resume payments as soon as possible.
Frequently Asked Questions
How long can I stay in student loan forbearance?
Most federal student loan forbearance periods last up to 12 months at a time, and you can renew it if you still need help, but there is often a maximum total of three years for mandatory forbearance.
Does student loan forbearance hurt my credit score?
Forbearance itself does not directly hurt your credit score, but it may affect it indirectly if you stop making payments and your loan is reported as not being paid on time.
Can I get student loan forbearance for private loans?
Some private lenders offer forbearance options, but they are not required to, and the terms vary. You need to contact your private lender to ask about available options.
What happens to interest during student loan forbearance?
Interest continues to accrue on most loans during forbearance, including on subsidized loans, and it may be added to your principal balance if you do not pay it.
How do I apply for student loan forbearance?
You can apply by contacting your loan servicer and requesting a forbearance application, or you can submit a request online through your Federal Student Aid account.
