Forbearance pauses your loan payments temporarily, but interest keeps growing
Forbearance is an agreement with your loan servicer to stop making payments on your federal student loans for a set period — usually three to six months, though it can extend longer. During forbearance, you are not required to pay, and you will not be reported as delinquent to credit bureaus. The catch: interest continues to accrue on most loan types, meaning you owe more money when forbearance ends than when it began.
Forbearance is different from deferment, another pause option. In deferment, interest may not accrue depending on your loan type and the reason for the deferment. Forbearance is easier to obtain — your servicer has more discretion to grant it — but it costs you more in the long run because of that accruing interest.
This tool exists for people facing genuine hardship: job loss, medical emergency, unexpected expense. It is not meant as a permanent solution, and using it repeatedly signals that your loan balance may be unsustainable.
Key Takeaways
- Forbearance stops your payments for three to six months without marking you delinquent, but interest continues to grow on most federal loans.
- You must request forbearance from your loan servicer; it does not happen automatically, and you can request it multiple times if needed.
- Interest that accrues during forbearance gets added to your principal balance, so you owe more when payments resume.
- Forbearance is easier to obtain than deferment but costs more over time because interest keeps running.
- When forbearance ends, your payment resumes at the same amount unless you change your repayment plan.
How forbearance differs from deferment
Both forbearance and deferment pause your payments, but the interest behavior is the key difference. On subsidized federal loans, interest does not accrue during deferment — the government covers it. On unsubsidized loans and most other types, interest accrues in both forbearance and deferment. On private loans, forbearance and deferment rules vary by lender and are usually harder to obtain than federal options.
Forbearance is also easier to get. Your servicer can grant it based on financial hardship without requiring you to meet specific criteria. Deferment usually requires you to fall into a defined category: you are in school, unemployed and registered with the unemployment office, or facing economic hardship that meets the program's definition. If you do not fit those categories, forbearance may be your only pause option.
Both options hurt your long-term finances, but forbearance hurts faster because interest is almost always running. If you have a choice between the two, deferment is usually better — but only if you may have access to.
When you might request forbearance
Forbearance makes sense when you face a temporary money crisis and expect to resume payments within a few months. Common reasons include job loss, medical emergency, divorce, or a sudden drop in income. If you know the hardship will last three to six months, forbearance can bridge that gap without damaging your credit.
Forbearance is not a solution for loans you cannot afford long-term. If your payment is unsustainable even after the hardship passes, you should explore income-driven repayment plans instead. These plans lower your monthly payment based on what you actually earn and may offer forgiveness after 20 to 25 years of payments. Forbearance only delays the problem; income-driven plans reshape it.
You can request forbearance multiple times, but repeated requests signal that your loan burden is too heavy. Servicers may eventually deny requests if they see a pattern, and you will accumulate significant interest over time.
How to request forbearance from your servicer
Contact your loan servicer directly — the company that sends your bill each month. You can find your servicer's name and contact information on your loan documents or by logging into studentaid.gov and checking your loan details. Call them, visit their website, or send a written request. Most servicers allow you to request forbearance online through your account portal.
When you request forbearance, be prepared to explain your hardship. You do not need extensive documentation for general hardship forbearance, but having specifics ready helps: the date you lost your job, the amount of your medical expense, or the change in your income. The servicer will tell you whether they need written proof.
Your servicer will confirm the forbearance period in writing. Read this letter carefully — it will state the exact start and end dates, your payment status during forbearance, and what happens when forbearance ends. Keep this letter for your records.
What happens to interest during forbearance
On unsubsidized federal loans, subsidized loans held by private lenders, and all private student loans, interest accrues during forbearance. This means the interest is calculated daily and added to your loan balance. When forbearance ends and you resume payments, you owe more principal than you did when forbearance began.
You have a choice when forbearance ends: you can pay the accrued interest in a lump sum, or you can let it capitalize — meaning it gets added to your principal balance. If you capitalize the interest, your monthly payment may increase because you are now paying interest on a larger balance. If you pay the accrued interest separately, your payment stays the same but you pay cash upfront.
On subsidized federal loans, the government covers interest during forbearance, so your balance does not grow. This is one reason deferment on a subsidized loan is preferable to forbearance if you may have access to for it.
Your payment when forbearance ends
When forbearance ends, your payment resumes at the same amount you were paying before, unless you change your repayment plan. If you were on the standard 10-year plan, you return to that payment. If you were on an income-driven plan, your payment recalculates based on your current income at that time.
If you know your financial situation has not improved by the time forbearance ends, contact your servicer before the end date. You can request another forbearance period, switch to an income-driven repayment plan, or explore other options. Do not let your payment lapse — that triggers delinquency and credit damage.
Some borrowers use forbearance as a stepping stone to income-driven repayment. They pause payments for a few months, then switch to a plan with a lower monthly payment based on their actual income. This is a legitimate strategy if your hardship is temporary but your income is genuinely lower than your loan payment assumes.
The cost of forbearance over time
Forbearance is expensive because of compounding interest. If you have $30,000 in unsubsidized loans at 6% interest and take six months of forbearance without making payments, roughly $900 in interest accrues. If you capitalize that interest, you now owe $30,900, and your remaining payments are calculated on that higher balance. Over the life of a 10-year loan, that six-month pause can add hundreds of dollars to your total cost.
Multiple forbearance periods compound the problem. Two six-month periods in a 10-year loan can add $2,000 or more to your total repayment, depending on your interest rate and loan balance. This is why forbearance is meant for temporary hardship, not chronic inability to pay.
If you are considering forbearance because your payment is simply too high, income-driven repayment is usually a better choice. Your payment will be lower, and you may not accumulate as much extra interest.
Frequently Asked Questions
Does forbearance hurt my credit score?
No. During forbearance, your loan is not reported as delinquent, so your credit score should not be affected. However, if you miss payments before requesting forbearance or after it ends, that will damage your credit. Forbearance itself is a neutral event from a credit perspective.
Can I make payments during forbearance?
Yes. You are not required to pay, but you can pay if you want to. Any payment you make reduces your principal balance and the amount of interest that will accrue. Some borrowers make partial payments during forbearance to slow the growth of their debt.
How many times can I request forbearance?
Federal law allows up to three years of forbearance total on federal loans, but this can be spread across multiple requests. Your servicer may deny repeated requests if they see a pattern. If you need forbearance more than once or twice, your loan payment is likely unsustainable, and you should explore income-driven repayment plans instead.
What if I am on an income-driven repayment plan and request forbearance?
You can request forbearance while on an income-driven plan. When forbearance ends, your payment recalculates based on your income at that time. If your income has not changed, your payment will be the same. If your income has changed, your payment adjusts accordingly.
Does forbearance count toward Public Service Loan Forgiveness?
No. Months during forbearance do not count as may have access to payments toward Public Service Loan Forgiveness. Only months when you make an actual payment count. This is an important consideration if you are pursuing PSLF and considering forbearance.