Federal student loan forbearance allows you to stop paying for your student loan for a short period of time.
Such request, when granted, can also allow you to lower your monthly payments to avoid defaulting on your student loan payments.
Deferment vs forbearance are different and student loan forbearance is not for everyone.
(NOTE: Wondering if you need a forbearance or a deferment? Don’t make any moves before reading this FREE guide: 10 Things You Should Know About Student Loan Forbearance and Deferment in 2017. Easily find out which option is best for you and apply with confidence. Click here to learn more and get your free guide.)
Determining whether you qualify or if forbearance is indeed a game changer in your student loan repayment dilemma.
Several borrowers are able to take a forbearance if they are having trouble paying their monthly payment…
But sometimes making the decision to take a forbearance can be a little confusing and perhaps even a little daunting.
To help you out, we have all the details you need to figure out if a Student Loan Forbearance is right for you. Simply follow this post and you’ll be ready to apply in no time!
Federal Student Loan Forbearance | Fast Facts
Is student loan forbearance right for you?
Requesting forbearance on your student loans means you can postpone or reduce your monthly payments for a certain period.
Pros to Choosing Forbearance
1. Receive a reduced payment price point
What Is Student Loan Forbearance, Anyway … : https://t.co/Be18K2UJbZ …. pic.twitter.com/SmyrWLGGwH
— BINGBING Fortune (@BINGBINGFORTUNE) May 3, 2017
(NOTE: Wondering the pros and cons to a student loan forbearance? Don’t make any moves before reading this FREE guide: 10 Things You Should Know About Student Loan Forbearance and Deferment in 2017. Easily find out which option is best for you and apply with confidence. Click here to learn more and get your free guide.)
Qualifying for a forbearance allows you to continuously pay for your student loan at a lower amount.
This can alleviate your current financial situation without having to default on your student loan payments.
2. Payment period postponed/extended
You can take the time to get back on your feet financially through a federal student loan forbearance.
Different qualifications for student loan forbearance offers different time spans on how long you can temporarily seize paying off your student loans.
Economic hardship forbearances can last for a year and can be renewed for three consecutive years.
Fired from your job? You can temporarily stop paying for your student loans for six months.
3. Allows you more time to recover financially
Since you are given at least 6 months to lower your payments or temporarily stop from paying your monthly dues, you can find ways to earn more money.
Although it may be difficult for some to get their finances back on track during that time frame, forbearance provides a temporary relief for many debtors.
4. Makes your loan current, getting you out of the late payment cycle
Qualifying for student loan forbearance helps you get current on your repayments.
You’ll save on fees and interest that you’ll end up paying after defaulting or paying late on your loans.
(NOTE: Wondering the pros and cons to a student loan forbearance? Don’t make any moves before reading this FREE guide: 10 Things You Should Know About Student Loan Forbearance and Deferment in 2017. Easily find out which option is best for you and apply with confidence. Click here to learn more and get your free guide.)
Cons to Consider Before Acting
1. Forbearance is temporary, so you may be delaying eventual default
Federal student loan forbearance is not a one-time solution for your student loan debts.
It is temporary and you will need to pay off your student loans eventually.
Make use of the time to devise ways on how to get back on track when it comes to your finances.
2. Credit bureau still records previously past due payments
Due payments you have prior to forbearance are still available for a credit bureau.
Thus, do not be surprised to see your credit score changing as you fail to pay your loans on time.
3. You’re still liable to pay the accrued interest on your loans for the affected months
While US Govt is wasting BILLIONS, they’re simultaneously ripping grads off w/high student loan interest rates! pic.twitter.com/jieK7uY9wL
— Boston🇺🇸Bobblehead (@DBloom451) July 24, 2017
Even as you qualify for federal student loan forbearance, you will still pay all the interest accrued by your loan.
This is what makes forbearance different from student loan deferment.
All types of student loans that qualify for forbearance accrue interest that is added to your student loan principal.
Deferment, on the other hand, lightens your loan in paying for accrued interest for the following federal loans:
- Subsidized Direct Consolidation Loans
- Direct Subsidized Loans
- Subsidized Federal Stafford Loans
- Federal Perkins Loans
- Subsidized FFEL Consolidation Loans
4. Loans will capitalize if you don’t pay interest
An increase in the principal amount of your loan continues as you fail to pay the interest on your loans.
You’ll be surprised how much this interest can build up in a few months to a year of loan forbearance.
5. Can make your payment higher than it was initially
Owe on a student loan? Forbearance may not be the best move!https://t.co/cDoERlLhru
— Charlene Crowell (@CharleneM2) July 26, 2017
Federal student loan forbearance, again, is a temporary solution to lighten up your financial woes.
After your forbearance, you still have your student loan, plus the interest it has incurred over time to worry about.
Make use of your forbearance period to make more income and fix your financial issues.
Do You Qualify for Forbearance?
- Granted to those who are having financial problems
- Granted if you do not qualify for deferment
- Can be due to unemployment, medical expenses, or other special circumstances
How to Apply
Submit a General Forbearance Request and documentations proving you are eligible to your loan servicer.
(NOTE: Wondering how to get a student loan forbearance? Don’t make any moves before reading this FREE guide: 10 Things You Should Know About Student Loan Forbearance and Deferment in 2017. Easily find out which option is best for you and apply with confidence. Click here to learn more and get your free guide.)
Watch this video for advice on student loan forbearance:
Granted with a student loan forbearance? Share your experience in our comments section.
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