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Sometimes money can be tight and payments on your loan(s) may be difficult to make. Or you might be serving an internship or in the military, and find it hard to make payments. For these reasons and more, you may be eligible for loan forbearance. Forbearance allows you to postpone or reduce loan payments. There are several different types of forbearance, so contact your lender as soon as you know you can’t make a payment. Effective July 1, 2006, you are not required to request forbearance in writing; however, your lender may ask you to provide documentation supporting the reason for your request. Your lender will determine if you’re eligible for forbearance. If you aren’t eligible, or don’t contact your lender on time, you may default.
Keep in mind, forbearance holds you responsible for any accrued interest during your forbearance period. Interest will need to be paid monthly or quarterly, or may be added to your balance at the end of the forbearance period.
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