Forbearance pauses your student 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 it can extend longer. The loan does not go away; it waits. When forbearance ends, you resume payments at the same amount you were paying before, or your loan servicer recalculates based on your current balance.

The catch is that interest continues to accrue on most federal loans during forbearance. This means your loan balance grows even though you are not paying. On subsidized federal loans, the government covers the interest during forbearance, so your balance stays the same. On unsubsidized federal loans and private loans, unpaid interest is added to what you owe.

Forbearance is different from deferment, another pause option. Deferment also stops payments, but the rules about interest are stricter and the circumstances that may have access to you are narrower. Forbearance is easier to get into, which is why it is often the first option servicers mention.

Key Takeaways

  • Forbearance stops your monthly payments for three to six months (or longer in some cases), but interest on unsubsidized and private loans continues to grow.
  • You must request forbearance from your loan servicer; it does not happen automatically when you miss a payment.
  • General forbearance is available to most borrowers, but you will need to show financial hardship or other may have access to reason.
  • When forbearance ends, your payment resumes at the original amount unless you request an income-driven repayment plan or other change.
  • Forbearance does not forgive debt and does not stop collection activity if your loan is already in default.

Types of forbearance and who can request each one

Federal student loans have two main forbearance categories: general forbearance and mandatory forbearance. General forbearance is what most borrowers use. Your servicer can grant it if you are experiencing a financial hardship — job loss, medical emergency, divorce, or a sudden drop in income. You do not need to meet a specific income threshold; you just need to show you cannot pay right now. Your servicer has discretion to approve or deny a general forbearance request.

Mandatory forbearance is what your servicer must grant if you meet certain conditions. These include: you are a medical or dental resident in a national health service corps position; you are serving in the Peace Corps; you are on active duty in the military; or your monthly loan payment would exceed 20 percent of your gross monthly income. If you fall into one of these categories, your servicer cannot refuse forbearance.

Private student loans do not have a federal forbearance program. Each private lender sets its own rules. Some offer forbearance or payment pause programs; others do not. You will need to contact your private lender directly to ask what options exist if you cannot pay.

How to request forbearance from your servicer

Contact your loan servicer directly — the company that sends you your bill each month. You can find the servicer's name on your loan statement or at StudentAid.gov. Call the number on the back of your statement or log into your account online. Most servicers have a forbearance request form you can fill out, either on their website or by mail.

When you request forbearance, be ready to explain why you need it. Write a brief statement about your hardship: "I lost my job in March and have not found new work" or "My hours were cut and I cannot cover my loan payment this month." Keep it factual. Your servicer will review your request and usually respond within two to four weeks.

If your servicer denies your request, ask why. If the reason is that you do not may have access to for general forbearance, ask whether you might may have access to for deferment or an income-driven repayment plan instead. These are separate programs with different rules, and one might work when forbearance does not.

What happens to interest during forbearance

On subsidized federal loans (usually Subsidized Stafford Loans), the government pays the interest that accrues during forbearance. Your balance does not grow. When forbearance ends, you owe exactly what you owed when it started.

On unsubsidized federal loans (Unsubsidized Stafford Loans, PLUS Loans, and Grad PLUS Loans), interest accrues but you do not pay it during forbearance. The unpaid interest is capitalized — added to your principal balance — when forbearance ends. This means your loan balance is larger when you resume payments, and you will pay interest on that interest going forward.

Example: You have an unsubsidized loan with a $20,000 balance and a 6 percent interest rate. During a six-month forbearance, roughly $600 in interest accrues. When forbearance ends, your balance becomes $20,600, and your monthly payment is recalculated based on that higher amount.

On private loans, the lender's policy determines whether interest accrues and whether it is capitalized. Some private lenders do not charge interest during forbearance; others do. Ask your lender before you enter forbearance so you know what to expect.

How long forbearance lasts and what happens when it ends

General forbearance typically lasts three to six months. Your servicer sets the length when they approve your request. You can request forbearance again after it ends if you still cannot pay, but there is no limit to how many times you can use it — though servicers may ask more questions if you request it repeatedly.

Mandatory forbearance can last longer. If you are in the military or Peace Corps, forbearance may continue for the duration of your service. If your payment-to-income ratio qualifies you, forbearance can last up to three years.

When forbearance ends, your payment resumes. Your servicer will send you a notice 30 days before forbearance expires, telling you what your new payment will be. If you cannot resume payments at that amount, contact your servicer before forbearance ends. You can request another forbearance period, or you can ask about income-driven repayment plans, which may lower your payment permanently.

Forbearance does not stop collection or forgive debt

If your loan is already in default (usually 270 days past due on federal loans), forbearance will not stop collection activity. Your servicer may still report the default to credit bureaus, and the government may still garnish your wages or intercept your tax refund. Forbearance only pauses payments on loans that are current or reasonably recent.

Forbearance also does not reduce what you owe. It is a pause, not forgiveness. When forbearance ends, you still owe the full original amount, plus any accrued interest that was capitalized. If you are looking for a way to reduce your loan balance, forbearance is not it. Loan forgiveness programs (like Public Service Loan Forgiveness) and income-driven repayment plans with forgiveness after 20 or 25 years are separate options.

Forbearance versus deferment: which one to choose

Both forbearance and deferment pause your payments, but they differ in who qualifies and how interest is treated. Deferment is harder to get into — you usually need to be in school, unemployed and registered with the unemployment office, or experiencing economic hardship that meets a specific definition. Forbearance is easier: you just need to show you cannot pay.

On subsidized loans, interest is covered by the government during both forbearance and deferment, so your balance does not grow either way. On unsubsidized loans, interest accrues during both forbearance and deferment, but the rules differ slightly. In deferment, unpaid interest on PLUS Loans is capitalized when deferment ends; in forbearance, it is capitalized immediately. For most borrowers, forbearance is the faster route when you need a payment pause.

If you cannot get forbearance approved, ask your servicer whether you may have access to for deferment. If neither works, ask about income-driven repayment plans, which can lower your payment to as little as $0 per month based on your income.

Frequently Asked Questions

Will forbearance hurt my credit score?

Forbearance itself does not appear on your credit report as a negative mark. However, if you miss payments before requesting forbearance, those missed payments will be reported and will lower your score. Once forbearance is approved, your account is considered current, and no further damage occurs during the forbearance period.

Can I make payments during forbearance?

Yes. You can pay toward your loan at any time, even during forbearance. If you make payments during forbearance, those payments reduce your principal balance. This is useful on unsubsidized loans, where interest is accruing — paying during forbearance prevents that interest from being capitalized when forbearance ends.

What if I cannot pay when forbearance ends?

Contact your servicer before forbearance expires. You can request another forbearance period, or you can switch to an income-driven repayment plan, which recalculates your payment based on your current income and family size. Income-driven plans may lower your payment significantly or set it to $0 if your income is very low.

Does forbearance count toward Public Service Loan Forgiveness?

No. Months spent in forbearance do not count toward the 120 may have access to payments required for Public Service Loan Forgiveness. Only months in which you make a payment (or are in an income-driven repayment plan with a $0 payment while working for a may have access to employer) count. This is an important reason to avoid forbearance if you are pursuing forgiveness.

Can my private loan servicer offer forbearance?

Private lenders are not required to offer forbearance, but many do. Contact your lender directly and ask what options are available if you cannot pay. Some offer temporary payment pauses; others may offer interest-only payments or other arrangements. The terms vary widely by lender.