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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.


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.


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?

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    • oceansnsunsets profile image

      Paula 6 years ago from The Midwest, USA

      Phoenix, thank you!

    • PhoenixV profile image

      PhoenixV 6 years ago from USA

      Excellent information and hub voted up!