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A forbearance allows you to temporarily postpone your payments, extend the period of time allowed to make your payments, or allow you to temporarily make smaller payments. Granted at the discretion of your lender or servicer, you must apply for a forbearance, and you are responsible for the interest that accrues during the forbearance period regardless of your loan type.
Common situations for which a discretionary forbearance may be granted include:
- personal problems (such as economic hardship) that are affecting your ability to make scheduled payments
- unemployment (if you've already used the maximum time allowed for that deferment)
- poor health or disability when you may not qualify for disability deferment criteria
- request for a change of payment amount or payment due date on a loan that requires the lender to bring your loan current
Depending on your situation, there are other types of non-discretionary forbearance that are available and may be granted, sometimes even without having to apply or sign an agreement. Some of these situations include but are not limited to:
- medical or dental internship/residency
- debt exceeds monthly income
- Department of Defense loan repayment program
- bankruptcy filing
- serving in a national service position such as Americorps
- natural disasters
- local or national emergency
- closed school
- military mobilization
- teacher loan forgiveness program
Loan Discharge
Federal student loan debt is cancelled entirely if a student loan or PLUS borrower becomes totally and permanently disabled or dies. Other conditions in which student loan debt may be discharged either partially or in full include bankruptcy filing, school closure or false loan certification, or an unpaid refund from the school. Check with your servicer for further details.
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