ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Forbearance - Reducing the Cost of Student Loan Payments

Updated on December 3, 2011

Forebearance, an idea during tough financial times

Almost everyone has tough times financially at one point or another in life. If you are paying on federal student loans and it is getting increasingly difficult to keep up with everything, why not consider forbearance as an option? Forbearance sometimes allows people to postpone their student loan payments for a time, and is a temporary situation. Other times, it allows for an extended amount of time between payments, or can help lower the payments temporarily.

If you want to apply for forbearance, you will do so with your lender. They are the ones that decide whether or not to grant the forbearance. Something you will want to keep in mind is that if forbearance is granted, you are still responsible for paying all the interest that accrues during that time frame. This means more money out of pocket over the life of your loans. Still, during hard times you can use the break sometimes.

Source

Situations where Forbearance is often granted.

What does the federal government look at when considering whether to grant forbearance? Some of the things that are considered will be if you are encountering personal problems or an economic hardship that can affect your ability to pay on your regular payments. Things happen in life sometimes that are out of our control and I think its great that there are options for people experiencing hard financial times.

If you are unemployed and have already used up all time possible for deferment, then they may consider granting forbearance. If you come into poor health or a true disability then you also may be highly considered for being granted forbearance on your student loans.

Source

Some extra possible reasons you may be granted forbearance

While the above items are usually the key ones for granting forbearance to an individual, there are other things that might cause a lender to consider it as well. For instance, if you file for bankruptcy, that can enter into the equation. If your debt exceeds what your current income is, they may consider it.

Other things like if you must serve in the military, will be considered, as well as serving in some public service organizations. Things like AmeriCorps is a good example of one such public service organization. If there is a natural disaster, or a local or national emergency, they will take those facts into consideration as well.

Even if you are in some situation not mentioned here, it won't hurt to ask about your own possible situation. Lenders would rather you be upfront about your situation than just not pay them. Keep in mind that often when they help you in such ways, they are helping themselves as well. Don't put yourself and family through unnecessary hard times financially when there may be ways to get reprieve from the situation for a time. Sometimes, that is all you need to get back on your feet.

Ideas to get loans out of default

Do you know of anyone that has ever been granted forbearance on their student loans?

See results

Comments

    0 of 8192 characters used
    Post Comment

    • oceansnsunsets profile imageAUTHOR

      Paula 

      6 years ago from The Midwest, USA

      Phoenix, thank you!

    • PhoenixV profile image

      PhoenixV 

      7 years ago from USA

      Excellent information and hub voted up!

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)