You may remember hearing about forbearance when you first received your federal student loan or when you were leaving school. Forbearance is an option that a loan holder makes available to a borrower who is having difficulty making regular payments on his or her student loan. When requesting a forbearance, there are many things to consider. Here you will find tips and key information that can help you make a more informed decision about whether forbearance is the right option to help you manage repayment of your student loans.
A forbearance is a tool that your loan holder can use when you (the borrower) experience difficulty in making loan payments. If approved, a forbearance can:
There are four types of forbearance:
Although there are four types of forbearance, most borrowers who pursue this option are granted a discretionary forbearance or a mandatory forbearance. Both discretionary and mandatory forbearance types are options that you may request from your loan holder.