Managing Your Debt
Forbearance is an agreement between you and your lender whereby the lender permits a temporary halt to or lowering of your loan payments or an extension of your repayment period. You may request forbearance from your lender if you experience a temporary financial hardship under circumstances that do not qualify you for a deferment.
Interest continues to accrue during forbearance, and you are responsible for paying the interest on all types of student loans. You may request that the interest be added to the principal amount of the loan (capitalized) or that the lender bills you for the interest during the forbearance.
Have you been called to active duty?
The U.S. Department of Education is offering some help for troops and their families who have been called to active duty. Here are some general guidelines to find out if you might qualify, you:
- are on active duty in the Armed Forces in the United States and you have agreed to serve for at least one year,
- are a member of the National Guard or Ready Reserves who is called to active duty for more than 30 days, or
- are an active member of the Armed Forces who is re-assigned to other duty stations for more than 30 days.
- Download this PDF for more details: Information for Students and Borrowers Affected by Military Mobilizations
For more information, visit these websites:
Most forbearance is granted at the discretion of the lender, but some forbearance is mandatory and must be granted by the lender upon receiving the appropriate request and required documentation. The mandatory forbearance reasons are listed below.
Mandatory Forbearance |
Maximum Period |
| For the remainder of a medical or dental internship/residency if the internship/residency exceeds the two-year deferment period (granted in yearly increments) or for the entire internship/residency if the student does not qualify for that deferment. |
Unspecified |
| If the borrower’s Title IV loan payments exceed 20% of his/her monthly income. (This forbearance is granted in increments of up to one year at a time.) |
3 years |
| For a borrower serving in certain national service or Department of Defense repayment programs (granted in no more than yearly increments). |
Unspecified |
| Certain military mobilizations or local or national emergencies or disasters. |
Unspecified |
| When the effect of a variable interest rate on a standard or graduated repayment schedule would result in a loan not being repaid within the maximum 10-year repayment period. |
3 years |
| When the effect of decreased installment amounts under an income-sensitive repayment schedule would result in a loan not being repaid within the maximum 10-year repayment period. |
5 years |
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