When repaying a federal student loan becomes a heavy financial burden, knowledge of services to request a forbearance or deferment will indeed lighten up the load.
One of the perks of federal student loans is they offer flexible repayment plans. A forbearance or a deferment is an option wherein you can temporarily halt or momentarily reduce the amount of your student loan monthly payments.
In light of these options, below are the simple steps on how to request an extension for a forbearance period.
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How to Request a Forbearance | Steps to Postpone Student Loan Payments
What is a Forbearance?
Before we start the simple process, it will be better to give you a heads up about forbearance. Basically, a forbearance can help you postpone student loan payments for a certain period of time.
It’s somewhat similar to deferment. The difference is you don’t have to pay interest on specific types of loans throughout the deferment period. But if you’re not eligible for deferment, the best option is forbearance.
There are two types of forbearances: mandatory and general.
For the mandatory forbearance, your loan servicer will automatically grant you a forbearance if you meet the requirements and provide proper documentation.
General forbearance’s approval will depend on your lender’s discretion, especially if it’s general forbearance. You can request it if you don’t have the capability to make monthly student loan payments due to these following circumstances:
- Financial hardship
- Medical expenses
- Unemployed
- Other grounds acceptable to the loan servicer
Generally, forbearances will last no more than a year. But if you’re still experiencing financial difficulty when the set period lapses, you can request for a new forbearance. Your loan servicer or lender will be the one to set the forbearance period.
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There are quite a few organizations accredited by the Department of Education to help you with your student loan payments and one of them used to be FedLoan Servicing. However, FedLoan is no longer a federal student loan servicer after the end of the Student Loan Payment Pause from the Coronavirus Pandemic.
All student loan borrowers that had FedLoan as a servicer have been transferred to one of the following servicers: Aidvantage, Edfinancial, MOHELA, or Nelnet.
There can be some unforeseen circumstances that might lead you to a temporary financial hardship. Losing your job or sudden medical expenses are among other things that can hinder you from paying your monthly debts.
Fortunately, there are options available to lessen the monetary struggle. If you know how to request a forbearance or deferment for your student loan, then it might lift the heavy financial weight temporarily until you get back on your feet. Temporarily is the operative word.
Have you tried requesting a forbearance for your student loan? How did it work out for you? Share your experience with us in the comment section below!
Up Next: Student Loan Repayment Plan Comparison
Editor’s Note: This post was originally published in November 2017 and has been updated for quality and relevancy.