Time Frame for a Forbearance on a Student Loan

If you're repaying a student loan, and run into financial difficulty, you may be able to request a forbearance. A forbearance simply means a suspension of your regular repayments, or a reduction in your monthly payment amount. However, forbearances only last for a few months - and you may even prefer them to be as short as possible.

How Forbearances Work

Forbearances are for periods of temporary financial difficulty - such as unemployment, sudden emergency expenses or the like. If you request a forbearance and your lender approves it, your lender will then give you a break from your repayment schedule - usually between three and six months.

However, your lender will continue to charge the interest on your loan each month of your forbearance, and will add this to the amount you need to repay. You can offset this by opting to pay just the interest on your loan during your forbearance; but this still means you will be paying more money to your lender overall. So the shorter your forbearance period, the better.

Obtaining A Forbearance

Usually your lender will grant a forbearance if you can prove that your total student loan payments are greater than 20% of your monthly income. Contact your lender for an application.

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