Forbearance pauses your loan payments, but interest keeps growing

Forbearance is a temporary pause on your student loan payments. During forbearance, you stop making monthly payments for a set period — usually three to six months, though some types allow longer. The loan does not disappear; it waits. When forbearance ends, you resume regular payments, often at the same amount as before.

The catch: interest usually keeps accruing during forbearance, even on unsubsidized loans. That means your balance grows while you are not paying. When you restart payments, you owe more than you did when forbearance began. This is different from deferment, where interest on subsidized federal loans does not accrue, though forbearance is often easier to obtain.

Forbearance is not forgiveness. It is a temporary stop, not a reduction or cancellation of what you owe. You will eventually pay back everything, plus the interest that accumulated during the pause.

Key Takeaways

  • Forbearance stops your monthly payments for three to six months (or longer in some cases), but interest continues to build on most loan types.
  • Federal loans and private loans have different forbearance rules; federal loans are generally easier to place on forbearance and have more protections.
  • You must request forbearance — your loan servicer will not place you on it automatically, even if you stop paying.
  • When forbearance ends, your payment resumes at the original amount unless you have changed your income-based repayment plan.
  • Forbearance does not count toward Public Service Loan Forgiveness or other forgiveness programs, so time spent in forbearance delays those timelines.

How forbearance differs from deferment and income-driven repayment

Forbearance and deferment both pause payments, but they work differently. With deferment, interest on federal subsidized loans does not accrue — the government covers it. With forbearance, interest accrues on nearly all loan types. Deferment is harder to obtain; you usually need to be in school, unemployed, or in an economic hardship situation. Forbearance is broader and easier to request.

Income-driven repayment plans (like SAVE, PAYE, or IBR) do not pause payments; instead, they lower your monthly payment based on your income. If your income drops, your payment can drop to as low as $0 per month — but you are still officially in repayment, and interest still accrues. Income-driven plans count toward forgiveness timelines; forbearance does not.

If you are struggling with payments, income-driven repayment is often a better long-term choice than forbearance, because time in repayment counts toward forgiveness programs. Forbearance is best used as a short-term bridge when you have a temporary hardship you expect to recover from.

Types of forbearance and who can request each one

Federal student loans have two main forbearance types: discretionary forbearance and mandatory forbearance. Discretionary forbearance is what your loan servicer can grant if you ask and show financial hardship — job loss, medical bills, reduced income. Your servicer has some judgment here; they can approve or deny your request. Mandatory forbearance must be granted if you meet specific criteria: you are a medical or dental resident, you work in the Peace Corps, your federal student loan payment exceeds 20 percent of your gross monthly income, or you are on active military duty.

Private student loans do not have standardized forbearance rules. Each lender sets its own policy. Some private lenders offer forbearance; others do not. If you have private loans, contact your lender directly to ask whether forbearance is an option and what you need to show to request it.

Federal Parent PLUS loans have their own forbearance rules and are handled by the same servicer as your other federal loans. Graduate PLUS loans follow federal forbearance rules as well.

How to request forbearance on federal loans

Contact your federal loan servicer — the company that sends you your bill each month. You can find your servicer by logging into studentaid.gov and checking your loan details, or by calling the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). Do not wait until you miss a payment; request forbearance before you fall behind.

Your servicer will ask you to fill out a forbearance request form. For discretionary forbearance, you will need to describe your hardship — job loss, medical emergency, reduced hours, or other financial difficulty. You may need to provide recent pay stubs, a letter from your employer, or bank statements to show your situation. The servicer will review your request and tell you whether it is approved, usually within two to four weeks.

If approved, your servicer will send you a notice showing the forbearance period (start and end dates) and confirm that your payments are paused. Mark the end date on your calendar. When forbearance ends, you must resume payments unless you request another forbearance period or switch to a different repayment option.

What happens to interest during forbearance

On unsubsidized federal loans and private loans, interest accrues during forbearance. That means the interest is added to your loan balance. When forbearance ends and you resume payments, your balance is higher than it was when forbearance began. You are paying interest on interest — a process called capitalization.

On subsidized federal loans, interest still accrues during forbearance, but the government does not pay it for you (unlike deferment). The accrued interest is capitalized — added to your principal — when forbearance ends.

Some borrowers choose to make interest-only payments during forbearance to prevent capitalization. You can call your servicer and ask whether you can pay just the accrued interest each month while your principal payment is paused. This keeps your balance from growing, though it requires money you may not have if you are in hardship.

How forbearance affects loan forgiveness programs

Time spent in forbearance does not count toward Public Service Loan Forgiveness (PSLF), income-driven repayment forgiveness, or any other federal forgiveness program. If you are working toward PSLF and need forbearance, you are delaying your forgiveness timeline by however many months you are in forbearance.

This is a key reason to consider income-driven repayment instead. If you switch to an income-driven plan and your payment drops to $0 because of low income, you are still in repayment status and the months count toward forgiveness. Forbearance stops the clock.

If you are not pursuing forgiveness, this does not matter. But if you are counting on PSLF or forgiveness after 20 or 25 years of payments, forbearance will extend your timeline.

What to do when forbearance ends

Your servicer will send you a notice 15 days before forbearance ends, reminding you that payments resume on a specific date. Your first payment will be due on that date. If you do not resume payments, your loan will go into default, which damages your credit and can trigger wage garnishment or tax offset.

If you cannot afford to resume payments when forbearance ends, do not wait until you miss a payment. Contact your servicer before the end date and ask about your options: income-driven repayment, another forbearance period, or deferment if you may have access to. Staying in touch with your servicer keeps you out of default.

If your financial situation has improved, you may be able to resume your original payment amount. If it has not, switching to an income-driven repayment plan will lower your payment based on your current income.

Frequently Asked Questions

Does forbearance hurt my credit score?

Forbearance itself does not appear on your credit report as negative. However, if you stop paying without requesting forbearance and your loan goes into default, that will damage your credit. Requesting forbearance before you miss a payment keeps your account in good standing.

Can I get forbearance on private student loans?

Some private lenders offer forbearance, but policies vary widely. Contact your lender directly and ask whether forbearance is available and what documentation you need to provide. Private forbearance is less standardized than federal forbearance.

How many times can I request forbearance?

Federal law allows up to three years (36 months) of discretionary forbearance total across your lifetime, though your servicer may have stricter limits. Mandatory forbearance has no time limit if you continue to meet the criteria. Ask your servicer how much forbearance time you have already used.

Will forbearance delay my Public Service Loan Forgiveness timeline?

Yes. Months in forbearance do not count toward the 120 may have access to payments needed for PSLF. If you are pursuing PSLF, income-driven repayment is usually a better option because time in repayment counts, even if your payment is $0.

What is the difference between forbearance and just not paying?

If you request forbearance, your loan stays in good standing and interest accrues but you are not in default. If you simply stop paying without requesting forbearance, your loan goes into default after about 90 days of missed payments, which harms your credit and can lead to wage garnishment. Always request forbearance before you stop paying.