Direct Loans Forbearance
If you can't make your scheduled loan payments, but don't qualify for a deferment, your Direct Loan lender may be able to give you a forbearance. The Direct Loan forbearance allows you to temporarily stop making payments on your loan, temporarily make smaller payment, or extend the time for making payments.
Some common reasons for getting forbearance are illness, financial hardship or serving in a medical or dental internship or residency.
Under certain circumstances, borrowers will automatically qualify for a forbearance, such as when a borrower is currently in deferment, cancellation, change in repayment plan or consolidation, or if they’re involved in a military or national emergency.
Forbearance is also available to borrowers that are experiencing financial difficulty. A temporary forbearance can be either a postponement or reduction of payments for a period of time based on your situation. You can receive forbearance if you’re not eligible for a deferment. Unlike deferment, whether your loans are subsidized or unsubsidized, interest accrues, and you’re responsible for all interest payments.
Your loan holder can grant forbearance in intervals of up to 12 months at a time for up to 3 years. You have to apply to your loan servicer for forbearance, and you must continue to make payments until you've been notified your forbearance has been granted. If you stop making payments without being notified to do so, you risk the chances of not qualifying since the loan provider reviews your payment history.
Your loan holder can grant forbearance in intervals of up to 12 months at a time for up to 3 years. You have to apply to your loan servicer for forbearance, and you must continue to make payments until you've been notified your forbearance has been granted. If you stop making payments without being notified to do so, you risk the chances of not qualifying since the loan provider reviews your payment history.
Each loan provider has specific Direct Loan forbearance rules, so borrowers should contact them before submitting a Direct Loan forbearance application.
The same eligibility requirements and procedures for requesting Stafford Loan forbearance also apply to Plus Loan borrowers. However, since all PLUS Loans are unsubsidized, borrowers will be charged interest during periods of deferment or forbearance. If you don't pay the interest as it accrues, it will be capitalized (added to the principal balance of the loan), thereby increasing the amount you'll have to repay.
Other Useful Financial Aid Sites: Direct Loan | Direct Loans Forbearance | Direct Loan Repayment | Direct Loan Forgiveness | Direct Loan Application | Federal Direct Loans | Stafford Loan |
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The same eligibility requirements and procedures for requesting Stafford Loan forbearance also apply to Plus Loan borrowers. However, since all PLUS Loans are unsubsidized, borrowers will be charged interest during periods of deferment or forbearance. If you don't pay the interest as it accrues, it will be capitalized (added to the principal balance of the loan), thereby increasing the amount you'll have to repay.
Other Useful Financial Aid Sites: Direct Loan | Direct Loans Forbearance | Direct Loan Repayment | Direct Loan Forgiveness | Direct Loan Application | Federal Direct Loans | Stafford Loan |
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