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 temporary 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:
- 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.
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