Student loan forbearance pauses your monthly payments for a set period, but interest keeps accruing on most loans

Forbearance is a temporary pause on your student loan payments. During forbearance, you stop making monthly payments for a period the lender approves — usually three to six months, though it can be longer. The catch: interest continues to build on most types of loans, and that unpaid interest gets added to your balance when forbearance ends. You still owe the full amount; you are just not paying it right now.

Forbearance is different from deferment, which also pauses payments but may not accrue interest depending on your loan type. Forbearance is what lenders offer when you do not meet the strict conditions for deferment — for example, if you are not in school, not unemployed in a way the government recognizes, or not serving in the military.

The federal government offers forbearance on federal student loans through your loan servicer. Private lenders have their own forbearance policies, which vary widely. This guide focuses on federal loans, where the rules are consistent across all borrowers.

Key Takeaways

  • Forbearance stops your payments temporarily but does not stop interest from accruing on most federal loans, so your total debt grows.
  • You request forbearance from your loan servicer, and they decide whether to grant it based on your stated hardship and loan type.
  • General forbearance lasts up to six months at a time and can be renewed, but you can be in forbearance for no more than three years total on any single loan.
  • Interest that accrues during forbearance gets capitalized — added to your principal balance — when forbearance ends, making your future payments larger.
  • Forbearance does not count toward Public Service Loan Forgiveness, and it may affect your income-driven repayment plan calculations.

How forbearance works and what happens to your interest

When your forbearance period begins, your loan servicer stops collecting your monthly payment. You are not required to pay anything during this time. However, interest on your loan continues to accrue — that is, it keeps building — every single day.

At the end of forbearance, the servicer adds all that unpaid interest to your loan balance. This is called capitalization. If you owed $25,000 and $1,500 in interest accrued during forbearance, your new balance becomes $26,500. Your next payment is calculated on this higher amount, so your monthly payment may increase.

The only exception is subsidized federal loans, where the government pays the interest during forbearance. If you have subsidized loans, no interest accrues while you are in forbearance. Unsubsidized loans, PLUS loans, and private loans all accrue interest during forbearance.

Types of forbearance and how to request one

Federal student loans have two types of forbearance: general forbearance and mandatory forbearance. General forbearance is what you request when you are in financial hardship. Mandatory forbearance is what your servicer must grant you if you meet certain conditions — for example, if your monthly payment is 20 percent or more of your gross monthly income, or if you are a medical or dental resident.

To request general forbearance, contact your loan servicer directly. You can find your servicer's name and contact information on your loan documents or at studentaid.gov. The servicer will ask you to explain your hardship — job loss, medical emergency, reduced income, or other financial difficulty. They do not require documentation for general forbearance the way they do for deferment, but they may ask follow-up questions.

The servicer decides whether to grant forbearance based on your situation and loan type. If approved, forbearance typically lasts three to six months. You can request renewal before it expires, and most servicers will grant it if you are still in hardship. However, you cannot be in forbearance for more than three years total on any single loan, and the clock resets if you move to a different repayment plan or consolidate.

How forbearance affects your loan balance and future payments

Because interest accrues during forbearance on most loans, your debt grows even though you are not paying. A six-month forbearance on a $30,000 unsubsidized loan at 5 percent interest will add roughly $750 to your balance. That $750 then earns interest itself for the rest of your loan term.

This compounds over time. If you enter forbearance multiple times — say, three separate six-month periods — the interest from each period capitalizes separately, and you end up paying interest on interest. Over a 10-year repayment plan, this can add thousands of dollars to your total cost.

When forbearance ends, your monthly payment is recalculated on the new, higher balance. If you were on an income-driven repayment plan, your payment may increase even if your income has not changed, because the calculation is based on your loan balance.

Forbearance versus deferment: which one to choose

Both forbearance and deferment pause your payments, but deferment is usually better if you may have access to for it because interest does not accrue on subsidized loans during deferment. Forbearance is what you get when deferment is not an option.

You may have access to for deferment if you are in school at least half-time, unemployed and registered with your state's unemployment office, experiencing economic hardship, serving in the military, or in a medical or dental residency. The application process is stricter — you have to prove your status with documents like a school enrollment letter or unemployment paperwork.

Forbearance requires less documentation but costs more in the long run because of interest accrual. If you do not meet deferment requirements, forbearance is your next option. If you do meet them, deferment is usually the better choice.

Forbearance and Public Service Loan Forgiveness

Time spent in forbearance does not count toward the 120 may have access to payments required for Public Service Loan Forgiveness (PSLF). If you are working toward PSLF and enter forbearance, your timeline to forgiveness gets longer by however many months you are in forbearance.

This is an important consideration if you are close to the 120-payment mark. If you have 110 may have access to payments and enter six-month forbearance, you will need to make six more payments after forbearance ends to reach 120 — so your forgiveness date moves back six months.

If you are pursuing PSLF, explore income-driven repayment plans before requesting forbearance. Income-driven plans can lower your payment to as little as $0 per month if your income is low enough, and payments still count toward PSLF even if they are $0.

What happens when forbearance ends

Your loan servicer will contact you before forbearance expires to tell you what your new payment will be. The capitalized interest is added to your balance, and your payment is recalculated based on your repayment plan and the new balance.

If you cannot afford the new payment, you have options. You can request another forbearance period if you are still in hardship. You can switch to an income-driven repayment plan, which recalculates your payment based on your income rather than your balance. Or you can consolidate your loans, which resets the forbearance clock and may lower your payment.

Do not ignore the notice. If you do not respond and forbearance expires, your servicer will resume collecting your regular payment. If you cannot pay, your loan will go into delinquency, which damages your credit and can lead to wage garnishment.

Frequently Asked Questions

Does forbearance hurt my credit score?

Forbearance itself does not appear on your credit report as negative. However, if you miss payments before entering forbearance or after it ends, those missed payments will hurt your score. As long as you are in an approved forbearance period, you are not in default.

Can I pay down my loan while in forbearance?

Yes. You can make voluntary payments during forbearance, and those payments go directly to your principal balance. This is a way to reduce the interest that will accrue. Some borrowers make small payments during forbearance to offset the accruing interest, though you are not required to.

What is the difference between forbearance and income-driven repayment?

Income-driven repayment lowers your monthly payment based on your income and family size, but you still make a payment every month and it counts toward forgiveness programs. Forbearance pauses payments entirely but does not count toward forgiveness. Income-driven plans are usually better if you have low income but some ability to pay.

Can I get forbearance on private student loans?

Private lenders offer forbearance, but the terms vary by lender. Some private lenders do not offer forbearance at all, or they offer it only in cases of extreme hardship. Contact your private lender directly to ask about their forbearance policy. Federal loans have consistent rules; private loans do not.

How many times can I request forbearance?

You can request forbearance multiple times, but the total time in forbearance on any single loan cannot exceed three years. Once you hit three years, you cannot enter forbearance on that loan again unless you consolidate it, which resets the clock.