None of the Above

Forbearance

If you are willing but unable to pay on your FFELP/FDL loan(s) and you do not qualify for a deferment, you can request forbearance. Forbearance is a temporary release from making loan payments, an extension of time for making payments, or a temporary reduction in payment amounts. Forbearance is less favorable than a deferment for your subsidized loan(s) because you are responsible for paying any interest that accrues on your loan during the forbearance period. You may pay the accruing interest, or add it to the loan principal (this is called "capitalizing") and pay it later when the forbearance ends. Remember, however, that capitalization means you will be paying interest on interest - the total cost of your loan repayment will be considerably higher. 

Lenders must grant forbearance upon your request, if: 

  1. The amount of your monthly Title IV student loan payments due is equal to or greater than 20% of your total monthly income (3 year limit);
  2. The amount of your monthly Title IV student loan payments due is equal to or greater than 20% of your total monthly income (3 year limit);
  3. You are performing National service under the AmeriCorps program or certain U.S. Department of Defense programs.
Lenders have the option to grant forbearance if you intend to pay the loan but, due to poor health or other valid reason, are currently unable to make the scheduled payments. Generally, forbearance is available for up to three (3) years and granted for six-month intervals. Please contact your lender regarding forbearances.  

As you can see, there are many options available as you begin to repay your loan(s). The responsibility to repay your loan(s) belongs to you alone, but remember, there is help available to assist you with questions you may have regarding repayment, deferment or forbearance options.  

Also, if you are having problems meeting your repayment obligations, we suggest that you contact a local Consumer Credit Counseling Service.