What is Student Loan Forbearance and When Should You Use It?

What is Student Loan Forbearance and When Should You Use It?

Student Loan Forbearance allows you to temporarily suspend your student loan payments. These programs can help when you’re in financial trouble. For example, if you lose your job, it can become difficult to keep up with your monthly loan payments.

Not making your payments and defaulting on student loans can affect your credit score and potentially have other negative financial repercussions. Learn the pros and cons of forbearance to help you decide if it’s right for you.

What is Student Loan Forbearance?

Student loan deferral is the temporary suspension or reduction of student loan payments. During a deferral period, you do not have to pay anything on the principal amount of your student loan. Interest may continue to accrue on your loans and may be capitalized or added to your balance at the end of the forbearance period. Continue reading “What is Student Loan Forbearance and When Should You Use It?”