Forbearance lets you pause or reduce your student loan payments for a set period, but interest usually keeps growing
Forbearance is a temporary pause on your student loan payments. During forbearance, you stop making monthly payments (or make smaller ones) for a defined length of time — typically three to six months, though some types last longer. The catch: interest on your loan keeps accruing, which means the amount you owe grows even though you are not paying.
Forbearance is different from deferment, where interest may stop accruing depending on your loan type. Forbearance is also not forgiveness — you still owe the full amount at the end. It is a temporary relief tool, not a path to having the debt erased.
The main reason to use forbearance is to buy time when you cannot afford your regular payment. It prevents your loan from going into default (which damages your credit and triggers collection action) while you handle a temporary hardship.
Key Takeaways
- Forbearance pauses your payments for three to six months (or longer in some cases), but interest continues to accrue on most federal loans.
- You must request forbearance — your loan servicer will not place you in it automatically, even if you stop paying.
- Federal loans and private loans have different forbearance rules; federal loans offer more protection and longer terms.
- At the end of forbearance, your unpaid interest may be added to your principal balance, increasing what you owe overall.
- Forbearance does not count toward Public Service Loan Forgiveness or income-driven repayment plan progress the way deferment sometimes does.
How forbearance works with federal student loans
Federal student loans — Direct Loans, FFEL loans, and Perkins Loans — have two types of forbearance: discretionary forbearance and mandatory forbearance.
Discretionary forbearance is what your loan servicer can grant if you ask and show hardship. You request it, they decide whether to approve it, and if they do, they typically grant it for three to six months at a time. You can request it again when it ends. Hardship reasons include job loss, medical bills, or a sudden drop in income. You do not need to prove the hardship with documents in most cases — telling your servicer you are struggling is usually enough to start the conversation.
Mandatory forbearance is what your servicer must grant if you meet specific criteria. These include being a medical or dental resident, serving in the Peace Corps, or having a debt-to-income ratio above 20 percent. If you meet one of these conditions, your servicer cannot refuse forbearance; they must offer it.
During federal forbearance, interest accrues on all loan types except subsidized Direct Loans and subsidized FFEL loans. On subsidized loans, the government pays the interest during forbearance, so your balance does not grow. On unsubsidized loans, private loans, and PLUS loans, the interest accrues and is usually added to your principal at the end of forbearance — a process called capitalization.
How forbearance works with private student loans
Private student loans do not have a standard forbearance program the way federal loans do. Each lender sets its own rules. Some private lenders offer forbearance; others do not. Some allow you to pause payments entirely; others only let you reduce them.
If you have a private loan and are struggling to pay, contact your lender directly and ask what options they have. They may call it forbearance, hardship deferment, or a payment pause — the name varies. Some lenders will work with you; others will not. There is no legal requirement that they do, so your options depend entirely on what that lender chooses to offer.
Interest on private loans almost always accrues during any payment pause, and it is usually capitalized at the end. Read your loan agreement or call your lender to find out their specific terms before you enter forbearance.
What happens to your interest during forbearance
On federal subsidized loans, the government covers the interest during forbearance, so your balance stays the same. This is the only scenario where forbearance does not cost you money in the long run.
On federal unsubsidized loans, PLUS loans, and all private loans, interest accrues every month during forbearance. At the end of the forbearance period, that unpaid interest is usually added to your principal balance. If your principal was $30,000 and you accrue $500 in interest during a six-month forbearance, your new principal becomes $30,500. You then owe interest on that higher amount going forward.
This is why forbearance is a temporary measure, not a long-term solution. The longer you stay in forbearance, the more your balance grows. If you can afford even a small payment during forbearance, making it will reduce how much interest capitalizes at the end.
How to request forbearance from your loan servicer
Contact your federal loan servicer directly — by phone, online, or mail. You can find your servicer's contact information on your loan statement or at studentaid.gov. Tell them you are requesting forbearance and explain your hardship briefly. You do not need to submit extensive documentation; most servicers will approve a request based on your word that you are struggling.
Your servicer will confirm the forbearance period (usually three to six months) and tell you when it ends. They will also explain what happens to your interest and what your payment will be when forbearance ends. Get this in writing if possible — either through email confirmation or by requesting a letter.
For private loans, call the lender listed on your statement. Ask if they offer forbearance or a similar payment pause. If they do, ask for the same written confirmation of the terms.
What happens when forbearance ends
When your forbearance period ends, your regular monthly payment resumes. If interest was capitalized (added to your principal), your payment may be higher than it was before, because you now owe more.
If you still cannot afford to pay when forbearance ends, you can request it again — but this is not a permanent solution. Repeated forbearance requests may signal to your servicer that you need a different repayment plan instead. For federal loans, you may be better served by switching to an income-driven repayment plan, which can lower your monthly payment based on what you actually earn.
If you do not request forbearance again and do not make a payment when it ends, your loan goes into delinquency. After 90 days of missed payments, it goes into default, which triggers collection action and damages your credit score.
Forbearance versus deferment: what is the difference
Both forbearance and deferment pause your payments, but they work differently. In deferment, interest does not accrue on subsidized federal loans — the government pays it. In forbearance, interest accrues on almost all loans. This makes deferment better for your wallet if you may have access to for it.
Deferment is also harder to get. You must meet specific criteria: you must be in school at least half-time, in a graduate fellowship program, in an approved apprenticeship, unemployed, or experiencing economic hardship. Forbearance is easier to access — you just need to show you are struggling.
For Public Service Loan Forgiveness, deferment counts toward your 120 may have access to payments, but forbearance does not. This matters if you work in public service and are pursuing forgiveness.
Frequently Asked Questions
Does forbearance hurt my credit score?
Forbearance itself does not appear on your credit report or damage your score. However, if you stop paying without requesting forbearance first, your loan goes into delinquency and default, which does hurt your credit. Requesting forbearance before you miss a payment keeps your account in good standing.
Can I make payments during forbearance?
Yes. If you can afford to make even a partial payment during forbearance, you should. Any payment you make reduces the principal balance, which means less interest accrues. This lowers how much interest gets capitalized when forbearance ends.
How many times can I request forbearance?
For federal loans, there is no legal limit on how many times you can request discretionary forbearance. However, servicers may push back if you request it repeatedly, and they may suggest an income-driven repayment plan instead. For private loans, it depends on the lender's policy.
What if I am in default — can I still get forbearance?
If your loan is already in default, you cannot enter forbearance directly. You must first bring the loan current or enter a rehabilitation program. Once the loan is out of default, you can then request forbearance if you need it.
Does forbearance count toward loan forgiveness programs?
For Public Service Loan Forgiveness, forbearance does not count toward your 120 may have access to payments. Deferment sometimes does, depending on the type. For income-driven repayment forgiveness (after 20 or 25 years), forbearance does not count toward the repayment period.