Forbearance

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.

Overview of forbearance

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:

Allow you to temporarily postpone student loan payments,
Extend the time period for making payments, or
Allow you to make reduced loan payments.

There are four types of forbearance:

Discretionary
Mandatory
Administrative
Mandatory Administrative

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.

Here are other documents located on www.tgslc.org that you may be interested in: