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What is student loan forbearance?

Student loan forbearance is a temporary postponement or reduction of your student loan payments because you are experiencing financial difficulty.

Forbearance works differently depending on whether you have a federal or private student loan:

  • Federal student loans: Your federal student loan servicer can grant forbearance for up to 12 months at a time. Generally, you have to apply to your loan servicer for forbearance, but you can usually do this over the phone. You must continue to make payments until you receive confirmation that your servicer has approved your forbearance request.
  • Private student loans: Private student loan forbearance varies and is more limited than the federal program. The terms and fees associated with postponing private student loan payments are based upon your contract and applicable laws. They may be different for each servicer and may not be as favorable as the terms of forbearance available for federal student loans. Contact your private student loan servicer as early as possible to explore this option.

Here are some things to consider before asking for forbearance:

  • Before you ask for forbearance, it’s important to understand that you are still responsible for the interest accrued during forbearance. You can pay the interest during the forbearance period, or your servicer may add it to the balance of your loans when the forbearance ends. Interest accrues on all loans, including federal subsidized loans. However, interest will not be added to your principal balance on Direct Loans. For other federal loans that are not owned by the Department of Education, the interest that accrues during a forbearance may be added to your principal balance.
  • You may be eligible for other repayment options. If you cannot afford your payments, you may be able to enroll in a payment plan that lowers your monthly payment. You also may be able to enroll in a deferment. Unlike forbearance, interest does not accrue during deferment on subsidized federal student loans. Contact your servicer to discuss your options.