Student Loan Repayment: What Is a Student Loan Forebearance?

Student loan forebearance is a temporary, legal, hold on student loan payments. Putting your student loans into forbearance will prevent the borrower's credit score from being hurt while no payments are being made. Forbearance is meant to be used in times of temporary hardship when you are willing but unable to make your payments for some reason. This will help you stay on track without causing damage to your credit rating. Interest rates will still apply to the balance on the loan while they are in forbearance, so it can be an expensive hold. Over the course of a 10 year student loan, there are 60 months or 5 years of forbearance time available. To activate forbearance, call the loan servicer and ask for the forbearance for a certain number of months until you believe you will be able to make the payments on time. Once you are out of forbearance time, you will not be able to skip payments without damaging your credit report unless you apply for a deferment. While the deferment application is waiting for approval, all payments should continue to be made on time or the credit score will suffer.

Need a Student Loan? Click here!