Forbearance lets you pause or reduce your student loan payments for a set period, but interest keeps accruing
Forbearance is an arrangement where your loan servicer allows you to temporarily stop making payments or make smaller payments than usual. During forbearance, you are not in default, and your loan stays in good standing — but interest continues to build on most loan types. When forbearance ends, you resume full payments, and the accrued interest gets added to what you owe.
Forbearance is different from deferment, another pause option where interest may not accrue depending on your loan type and reason. Forbearance is also different from income-driven repayment plans, which lower your monthly payment permanently based on what you earn rather than pausing it temporarily.
Key Takeaways
- Forbearance stops or reduces your payments for three to 12 months, but interest still accrues on most federal loans, making your total debt larger when it ends.
- Discretionary forbearance is granted at your servicer's choice if you face financial hardship; mandatory forbearance is required by law when you meet certain conditions like being in a medical or dental residency.
- You must request forbearance — your servicer will not offer it automatically — and you need to contact them before your payment is due.
- When forbearance ends, you can request another period, switch to a different repayment plan, or resume standard payments, depending on your loan type and circumstances.
The two types of forbearance and how to get each one
Discretionary forbearance is granted when your loan servicer decides you have a legitimate financial hardship. Common reasons include job loss, medical bills, natural disaster, or a temporary drop in income. You contact your servicer, explain your situation, and they decide whether to grant it. There is no may provide they will say yes, and the length of time they grant varies — typically three to six months, though you can request extensions.
Mandatory forbearance is required by federal law when you meet specific conditions. These include being in a medical or dental residency, serving in the Peace Corps, being a teacher in a low-income school (under the Teacher Loan Forgiveness program), or having a debt-to-income ratio above a certain threshold. If you meet the criteria, your servicer must grant it. Mandatory forbearance periods are usually 12 months.
To request forbearance, contact your loan servicer directly — the company that sends your bill each month. You can find their phone number on your loan statement or at StudentAid.gov. Have your loan account number ready. If you are facing hardship, be prepared to describe it briefly; you may need to provide documentation like a termination letter or medical bills, depending on your servicer's requirements.
How interest works during forbearance
On federal subsidized loans, the government pays the interest that accrues during forbearance, so your balance does not grow. On federal unsubsidized loans, federal PLUS loans, and private student loans, interest accrues daily and is added to your principal balance. This means when forbearance ends, you owe more than you did when it started.
Some servicers offer the option to pay accrued interest during forbearance even though you are not required to make full payments. If you can afford it, paying interest as it accrues keeps your balance from growing. When forbearance ends, you will owe less than if you let the interest capitalize (get added to the principal).
What happens when forbearance ends
Your servicer will notify you before forbearance expires, usually 30 to 60 days in advance. At that point, you have several options. You can resume your regular payment schedule. You can request another forbearance period if you still face hardship — though servicers may limit how many times you can do this. You can switch to a different repayment plan, such as an income-driven plan that bases your payment on your current income.
If you do nothing and forbearance ends without action from you, your regular payment becomes due. Missing that payment puts you in delinquency, which damages your credit and can lead to default. Contact your servicer before forbearance expires if you know you cannot resume payments.
Forbearance versus deferment: which pauses your payments
Both forbearance and deferment let you stop or reduce payments temporarily, but they differ in how interest is handled and who qualifies. With deferment, interest does not accrue on federal subsidized loans, but it does on unsubsidized loans and PLUS loans. Deferment is available only to certain borrowers — typically those still in school at least half-time, those in a grace period, those with economic hardship, or those serving in the military.
Forbearance is broader: almost any borrower can request it if they face hardship, and it is easier to obtain than deferment. However, interest accrues on most loan types during forbearance, making it more expensive in the long run. If you may have access to for deferment, it is usually the better choice because interest does not grow on subsidized loans.
How forbearance affects your credit and loan forgiveness
Forbearance does not damage your credit score the way delinquency or default does. Your loan remains in good standing, and on-time payment history is not affected. However, forbearance periods do not count toward Public Service Loan Forgiveness or income-driven repayment forgiveness programs. If you are pursuing forgiveness, forbearance pauses your progress toward it.
If you are on an income-driven repayment plan and enter forbearance, your monthly payment obligation is suspended, but when forbearance ends, you return to your income-driven payment amount — not a higher standard payment. This can be useful if your income drops temporarily and you want to avoid the paperwork of recertifying your income.
Private student loans and forbearance
Private lenders are not required to offer forbearance, and policies vary widely. Some private lenders have hardship programs similar to forbearance; others do not. If you have private loans, contact your lender directly to ask what options exist if you cannot pay. Some may offer temporary payment reductions, interest-only payments, or deferment, but there is no standard program like federal forbearance.
If you have both federal and private loans, prioritize federal forbearance first because it is more standardized and easier to obtain. Then contact your private lender separately to discuss your situation.
Frequently Asked Questions
Does forbearance stop interest from accruing on all loan types?
No. Interest stops accruing only on federal subsidized loans. Interest continues to accrue on federal unsubsidized loans, federal PLUS loans, and all private loans. When forbearance ends, accrued interest is added to your balance, increasing what you owe.
Can I request forbearance more than once?
Yes, but there are limits. You can request discretionary forbearance multiple times, though servicers may cap it at 36 months total over your loan's life. Mandatory forbearance has its own limits based on the reason — for example, medical residency forbearance is typically 12 months at a time. Ask your servicer what their policy is.
Will forbearance hurt my chances of getting a mortgage or other loan?
Forbearance itself does not damage your credit. However, if you have a history of missed payments before entering forbearance, that damage remains on your credit report. During forbearance, your student loan is not reported as delinquent, so it should not negatively affect a mortgage application if your other finances are in order.
What if I cannot afford to resume payments when forbearance ends?
Contact your servicer before forbearance expires. You can request another forbearance period, switch to an income-driven repayment plan that lowers your monthly payment based on your income, or explore other options. Do not wait until your payment is late — servicers are more willing to work with you if you reach out proactively.
Does forbearance count toward loan forgiveness programs?
No. Forbearance periods do not count toward Public Service Loan Forgiveness or income-driven repayment forgiveness. If you are pursuing forgiveness, forbearance pauses your progress. However, you can resume counting toward forgiveness once forbearance ends and you resume payments.