Forbearance pauses your loan payments temporarily, but interest keeps accruing
Forbearance is an arrangement where your loan servicer allows you to stop making payments for a set period — usually three to six months, though it can extend longer. During forbearance, you are not required to pay your monthly bill. The loan does not go into default, and no late fees are charged. However, interest continues to build on most types of loans, which means you owe more money when forbearance ends than you did when it started.
Forbearance is different from deferment, another pause option. In deferment, interest may not accrue on certain loan types (subsidized federal loans, for example). Forbearance is the more common option and the one servicers offer when you contact them about hardship.
When forbearance ends, your servicer will contact you about resuming payments. You can resume at your original payment amount, request a new repayment plan, or ask for another forbearance period if you still cannot pay.
Key Takeaways
- Forbearance stops your monthly payment obligation for three to six months without triggering default or late fees.
- Interest accrues during forbearance on most loan types, meaning your balance grows even though you are not paying.
- You must request forbearance from your loan servicer; it does not happen automatically when you miss a payment.
- Forbearance appears on your credit report but does not damage your score the way a missed payment or default does.
- After forbearance ends, you resume payments at the original amount or on a new plan you choose with your servicer.
When you can request forbearance
You can request forbearance if you are experiencing financial hardship. Common reasons include job loss, medical emergency, reduced income, or unexpected major expense. You do not need to prove hardship to the same degree as you would for income-driven repayment plans — servicers have broad discretion to grant forbearance.
Forbearance is available for federal loans (Direct Loans, FFEL loans, Perkins loans) and some private loans. Private loan forbearance depends entirely on your lender's policy; some offer it, others do not. Contact your servicer to ask what hardship reasons they accept and how long they will grant.
If you are in default on a federal loan, you may still be able to request forbearance, though some servicers require you to rehabilitate the loan first or make a good-faith payment. Ask your servicer directly about your situation.
How forbearance affects your credit and your balance
Forbearance appears on your credit report as a notation that payments were paused by agreement. This is not the same as a late payment or default, which damage your score more severely. However, forbearance can still lower your credit score because it shows you were unable to pay on schedule. The impact is usually smaller than a missed payment would cause.
Your loan balance grows during forbearance because interest accrues. On an unsubsidized federal loan, interest is added to your balance each month. On a subsidized federal loan, the government normally pays the interest, but during forbearance, interest accrues and is capitalized (added to your principal) when forbearance ends. Private loans vary by lender, but most accrue interest during forbearance as well.
Example: You owe $25,000 on an unsubsidized loan at 5% interest. During a six-month forbearance, roughly $625 in interest accrues. When forbearance ends, you owe $25,625, not $25,000.
How to request forbearance from your servicer
Contact your loan servicer directly by phone, mail, or their online portal. Your servicer's name and contact information appear on your loan statements and at studentaid.gov if you have federal loans. Have your loan account number ready.
Tell the servicer you are requesting forbearance due to hardship. You do not need to submit documents upfront in most cases — the servicer will ask questions about your situation and may request pay stubs or a letter explaining the hardship. Be honest about your circumstances; servicers can deny forbearance if they believe you are not experiencing genuine hardship.
Once approved, the servicer will send you a written notice stating the forbearance period (start and end dates), whether interest will accrue, and what happens when it ends. Keep this notice. If your servicer does not send written confirmation, request it in writing yourself.
What happens when forbearance ends
Your servicer will contact you 15 to 30 days before forbearance ends. At that point, you have several options: resume your original payment amount, switch to a different repayment plan, or request another forbearance period.
If you do nothing, your servicer will resume your original payment amount automatically. If you cannot afford that amount, contact your servicer before the forbearance period ends to discuss alternatives. Income-driven repayment plans may lower your monthly payment based on your current income. Switching plans takes one to two weeks to process.
If you request a second forbearance period and your servicer approves it, the same rules apply: no payment due, but interest accrues. Most servicers will grant forbearance multiple times, though some have limits (for example, a maximum of 36 months total per loan).
Forbearance versus other payment pause options
| Option | Payment Required | Interest Accrues | Credit Impact | How Long |
|---|---|---|---|---|
| Forbearance | No | Yes (most loans) | Moderate | 3–6 months, renewable |
| Deferment | No | No (subsidized); Yes (unsubsidized) | Minimal | Varies by reason |
| Income-driven repayment | Yes (may be $0) | Yes | None | Until loan is paid off |
| Temporary payment reduction | Reduced amount | Yes | None | Usually 3 months |
Deferment is similar to forbearance but usually requires you to meet specific criteria (enrolled in school, unemployed, economic hardship). On subsidized federal loans, the government pays interest during deferment, so your balance does not grow. Forbearance is easier to get but costs you more in the long run because interest accrues.
Income-driven repayment plans are permanent, not temporary. Your payment is recalculated based on your income and family size, and may be as low as $0 per month if your income is very low. Unlike forbearance, income-driven plans do not pause your loan — you are still making payments (or $0 payments), and the loan continues toward forgiveness after 20 to 25 years.
Frequently Asked Questions
Does forbearance stop my loan from going into default?
Yes. Once forbearance is approved, your loan is no longer in default and late fees stop accruing. However, if you miss payments before requesting forbearance, those missed payments may already be on your credit report. Forbearance only protects you going forward.
Can I make payments during forbearance?
Yes. You are not required to pay, but you can pay voluntarily if you have the money. Any payment you make will reduce your principal balance and lower the interest that accrues. Some borrowers make small payments during forbearance to minimize the balance growth.
What if I cannot afford payments when forbearance ends?
Contact your servicer before forbearance ends and ask about income-driven repayment plans, which can lower your payment to $0 if your income is low enough. You can also request another forbearance period. Do not wait until after forbearance ends to reach out — servicers are more flexible when you plan ahead.
Does forbearance count toward Public Service Loan Forgiveness?
No. Months spent in forbearance do not count toward the 120 may have access to payments needed for PSLF. Only months in which you made a payment (or were on an income-driven plan making $0 payments) count. If you work in public service, consider income-driven repayment instead of forbearance.
Will forbearance hurt my credit score?
Forbearance will likely lower your score slightly because it shows you were unable to pay on schedule. However, the damage is much smaller than a missed payment or default would cause. Your score will recover as you resume payments and build a record of on-time payment.