Forbearance pauses your monthly student loan payments for a set period, but interest usually keeps accruing
Forbearance is an arrangement where your loan servicer allows you to stop making payments temporarily — usually for 3 to 12 months — without going into default. During forbearance, you are not required to pay, but interest on most federal loans continues to accumulate. That unpaid interest gets added to your loan balance when forbearance ends, making your total debt larger than it was when you started.
Forbearance is different from deferment, another pause option where interest may not accrue depending on your loan type and circumstances. Forbearance is also different from income-driven repayment plans, which lower your monthly payment but keep you in active repayment. You request forbearance from your loan servicer — the company that collects your payments — not from the Department of Education.
The main reason to use forbearance is temporary hardship: job loss, medical emergency, or a sudden drop in income. It gives you breathing room without the formal application process that deferment sometimes requires. But because interest keeps growing, forbearance is usually a short-term tool, not a long-term solution.
Key Takeaways
- Forbearance stops your payments for 3 to 12 months, but interest on federal loans usually continues to accrue and gets added to what you owe.
- You request forbearance directly from your loan servicer, and they can grant it for general hardship without requiring formal documentation in many cases.
- Forbearance does not count as default, so it does not damage your credit score the way missed payments do.
- When forbearance ends, your payment resumes at the original amount unless you change your repayment plan or request another period of forbearance.
- Income-driven repayment plans and deferment are separate options that may lower your payment or stop interest from accruing, depending on your loan type.
How forbearance works step by step
Contact your loan servicer — the company listed on your loan statement or found through the Federal Student Aid website's loan search tool. Tell them you are experiencing hardship and ask for forbearance. You do not need to submit forms or proof for general hardship forbearance; the servicer can grant it based on your request alone.
Your servicer will confirm the forbearance period in writing, usually 3 to 12 months depending on your loan type and their policy. During that time, you make no payments. Your account stays in good standing, and no late fees accrue. However, interest on federal subsidized loans, unsubsidized loans, and PLUS loans continues to build. Private student loans may have different rules — check your promissory note or contact your lender directly.
When forbearance ends, your servicer will notify you. Your regular payment resumes at the original amount. Any unpaid interest from the forbearance period is capitalized — added to your principal balance — so your next payment covers a larger loan amount. If you cannot resume payments when forbearance ends, you can request another period or explore income-driven repayment plans.
When interest accrues and when it does not
On federal subsidized loans, the government normally pays the interest while you are in school or in deferment. During forbearance, the government stops paying, and interest accrues to you. On federal unsubsidized and PLUS loans, interest accrues from the moment the loan is disbursed, including during forbearance. Private loans follow the terms in your promissory note; most accrue interest during forbearance, but some may not.
Interest capitalization — the addition of unpaid interest to your principal — happens automatically when forbearance ends. This means your loan balance grows, and future interest is calculated on the larger amount. Over time, this can significantly increase what you owe. If you can afford to pay interest during forbearance, doing so prevents capitalization and saves money in the long run.
Forbearance versus deferment and income-driven plans
Deferment also pauses payments, but interest does not accrue on federal subsidized loans during deferment — only on unsubsidized and PLUS loans. Deferment usually requires proof of hardship (unemployment, economic hardship, or enrollment in school) and has stricter may be able to access rules. Forbearance is easier to obtain but costs more because interest accrues on all loan types.
Income-driven repayment plans do not pause payments; instead, they recalculate your monthly payment based on your current income. If your income has dropped, your payment may become very low or even zero. Unlike forbearance, income-driven plans keep you in active repayment, which matters for Public Service Loan Forgiveness and other forgiveness programs. Income-driven plans can be permanent, whereas forbearance is temporary.
| Option | Payment paused? | Interest accrues? | How long? | Easiest to get? |
|---|---|---|---|---|
| Forbearance | Yes | Yes (on most loans) | 3–12 months | Yes |
| Deferment | Yes | No (subsidized only) | Varies | No — requires proof |
| Income-driven repayment | No — payment recalculated | Yes | Permanent until you change plans | Moderate — requires income verification |
What happens when forbearance ends
Your loan servicer will send you a notice 15 days before forbearance ends, stating your new payment amount and due date. If you have not made other arrangements, your regular payment resumes automatically. If you cannot pay the full amount, contact your servicer before the due date — do not wait until you miss a payment. You can request another forbearance period, switch to an income-driven plan, or explore other options.
If you miss the payment after forbearance ends, your loan goes into delinquency. After 90 days of missed payments, it goes into default, which damages your credit score and can trigger wage garnishment or tax offset. Forbearance protects you from default during hardship, but only while it is active.
Private student loans and forbearance
Private lenders are not required to offer forbearance, and their policies vary widely. Some offer forbearance similar to federal loans; others do not. Check your promissory note or contact your lender to learn what options are available. If your private lender does not offer forbearance, you may be able to negotiate a temporary payment reduction or pause, but this is not may provide and may affect your credit score.
If you have both federal and private loans, handle them separately. Federal forbearance does not apply to private loans, and vice versa. Prioritize federal loans first because they have more built-in protections and options.
Frequently Asked Questions
Does forbearance hurt my credit score?
No. Forbearance does not appear as a missed payment on your credit report. Your account stays in good standing during forbearance, so your credit score is not damaged. However, if you miss payments after forbearance ends, those missed payments will be reported and will hurt your score.
Can I pay down my loan during forbearance?
Yes. You can make voluntary payments during forbearance, and they will reduce your principal balance. Paying interest during forbearance prevents capitalization and saves money. Your servicer will apply payments to interest first, then principal, unless you request otherwise.
What if I cannot afford to resume payments when forbearance ends?
Contact your servicer before your payment is due. You can request another forbearance period, switch to an income-driven repayment plan (which may lower your payment based on your income), or explore other options. Do not ignore the deadline — missing payments triggers delinquency and default.
Does forbearance count toward Public Service Loan Forgiveness?
No. Forbearance pauses your repayment, so months in forbearance do not count toward the 120 may have access to payments required for PSLF. If you work in public service and need to pause payments, deferment or income-driven repayment may be better options because they keep you in active repayment status.
Can my loan servicer deny forbearance?
For general hardship forbearance, servicers rarely deny requests. However, if you have already used forbearance recently or for an extended period, they may limit how much more you can use. Mandatory forbearance (for specific situations like military service or teaching) cannot be denied if you meet the criteria.