| Whether you have graduated or are already in | | | | -if you are in a national service position where you will |
| repayment for your student loans, you are probably | | | | receive an award under the National and Community |
| considering options to reduce your monthly payments. | | | | Service Trust Act of 1993 |
| Depending on your situation, student loan forbearance | | | | -if you have maintained your eligibility for loan |
| can help you if you are finding it difficult to meet your | | | | forgiveness under the Teacher Loan Forgiveness |
| student loan payment schedule. | | | | Program and your lender believes that the cancellation |
| Student loan forbearance is a mechanism used by | | | | amount will satisfy the anticipated loan balance at the |
| lenders to assist you when you are struggling making | | | | time of the expected cancellation |
| monthly payments. A forbearance is granted at the | | | | -participating in a qualifying service as defined by the |
| discretion of the lender and is subject to some criteria. | | | | Child Care Provider Loan Forgiveness Program |
| Once granted, a forbearance allows you to | | | | -participating in qualifying service for partial loan |
| temporarily postpone student loan payments, extend | | | | repayment under the Student Loan Repayment |
| the repayment schedule and can allow you to make | | | | Programs administered by the U.S. Department of |
| reduced loan payments. There are four types of | | | | Defense |
| forbearance but the two main types that you can | | | | Other Options to Consider |
| request from a lender are discretionary forbearance | | | | In certain situations, a student loan deferment may be |
| and mandatory forbearance. The other two types are | | | | a better option. Unlike a discretionary forbearance, you |
| administrative and mandatory administrative but are | | | | may be eligible for a deferment if you are in school, |
| mainly used by the lender to apply to certain situations. | | | | unemployed, experiencing economic hardship, or in the |
| Discretionary forbearance You may be granted | | | | military. You should investigate your options and |
| discretionary student loan forbearance in certain | | | | discuss your intentions with your lender. Note that |
| financial hardship situations that impact the repayment | | | | interest accrues on all loans during periods of |
| of your debt. This is the most common type of student | | | | forbearance, and with a student loan deferment, the |
| loan forbearance and some situations that may qualify | | | | federal government pays the accruing interest on |
| you are: -if you are in school with an enrollment status | | | | subsidized Stafford loans. Certain loans continue to |
| of less than half-time. (Keep in mind that if your status | | | | accrue interest with either a forbearance or |
| is more than half-time you may qualify for student loan | | | | deferment. Some of these are unsubsidized Stafford |
| deferment), -if you have become unemployed (in the | | | | loans, PLUS loans, and those portions of consolidation |
| case when you have surpassed the maximum | | | | loans comprised of unsubsidized Stafford and PLUS |
| deferment time limit), -in poor heath, -working less hours | | | | loans. |
| though the reduction of hours by your employer, -in or | | | | One other point to consider is that federal student loan |
| are experiencing a sudden life circumstance which | | | | forbearance doesn't lock in interest rates. Even though |
| impacts your income | | | | loans are deferred for a period of time, they still have |
| Also, in certain financial situations, a discretionary | | | | variable rates. If locking in a lower interest rate is your |
| forbearance in the form of reduced payments may be | | | | main concern, you should look into student loan |
| granted. The benefit of this is that you continue making | | | | consolidation. |
| payments on your account, which is better than not | | | | Student loan forbearance is a worthwhile option to |
| making any payments whatsoever. | | | | consider in order to help you though a period of |
| Mandatory forbearance The other type of | | | | financial hardship, poor health, reductions in work hours, |
| forbearance is a mandatory forbearance which you | | | | and unforeseen life circumstances especially when |
| can request for specific circumstances. You may be | | | | you find yourself ineligible for student loan deferment. |
| eligible for this type of student loan forbearance if you | | | | Investigate your options and by discussing your |
| fit the following criteria: | | | | situation with your lender, they can help you decide |
| -participating in an Internship/ Residency program | | | | which option is best for you. |
| (beyond the timeframe requirements for a deferment) | | | | |