What is Student Loan Forbearance

Whether you’re dealing with unemployment, medical costs, or a career change, understanding how forbearance works will help you make smart repayment decisions. In this article, we’ll go over the many types of forbearance, who qualifies, how it differs from deferment, and what options to consider before applying.

Let’s take a look at what student loan forbearance is and what you should do next.

What Does Student Loan Forbearance Mean?

Student loan forbearance is a temporary pause or reduction in their student loan payments because they are facing financial difficulties. It allows borrowers to take a break from making payments or temporarily lower their payments for a set period, but interest continues to accrue. This is different from a deferment, which might also pause payments but may involve different eligibility criteria and terms. According to Ascent Funding, forbearance is commonly utilized to deal with temporary hardships such as job loss or medical issues.

How Forbearance Helps Pause or Reduce Payments

Forbearance can help if you’re having trouble paying your student loans but expect things to get better soon. It is effective in short-term situations such as losing your job, suffering with a medical crisis, or experiencing another brief setback. It provides a break by allowing you to halt or reduce your monthly payments for a limited time.

To apply, you’ll need to contact your loan servicer, the company you make payments to. If you have federal student loans, you must complete out a form and may be required to demonstrate proof of financial hardship. Approval is based on the type of forbearance. For private loans, each lender has their own set of rules and procedures.

During forbearance, you might be able to make interest-only payments. This can keep your total loan balance from growing too much. Even small payments during this time can help reduce the amount you owe later. If you don’t pay the interest, it will get added to your loan once forbearance ends, which means you’ll owe more overall.

How Long You Can Pause Your Loan Payments

Once your forbearance is approved, federal student loans usually allow a pause in payments for up to 12 months. If you’re still facing money troubles after that, you can ask for an extension. However, federal loan forbearance has a lifetime limit of 3 years.

Private student loans work differently. Each lender sets its own rules. For example, Ascent lets borrowers apply for up to 24 months of Temporary Hardship Forbearance, broken into 1 to 3-month chunks.

Ascent also offers a special forbearance for natural disasters or declared emergencies. This option lets you pause payments for up to 3 months during events like hurricanes, wildfires, or pandemics.

Learn More: Student Loan Deferment vs. Forbearance

Types of Student Loan Forbearance: Federal vs. Private

Forbearance options vary depending on whether your student loan is federal or private. Understanding the types can help you choose the right solution when facing temporary financial challenges.

1. Federal Loan Forbearance Options

If you have federal student loans, your loan servicer (the company managing your loan) is where you’ll apply for forbearance. Each servicer may have slightly different rules, but most follow general guidelines set by the government.

General Forbearance

This is available if you’re facing temporary setbacks. Approval isn’t automatic—you must apply and explain your situation. Common reasons that may qualify include:

• High medical bills
• Ongoing financial trouble
• A recent job change or income drop

These forbearances usually last up to 12 months at a time and can be renewed if needed, though there is a three-year cap.

2. Mandatory Forbearance

Unlike general forbearance, mandatory forbearance must be granted if you meet specific criteria and submit all required forms.

You may qualify for a 12-month mandatory forbearance if you’re:

• Serving in AmeriCorps
• In a medical or dental residency or internship
• Part of the National Guard
• Receiving repayment help through the Department of Defense

Other situations that qualify:

• You’re a teacher eligible for teacher loan forgiveness
• Your federal loan payments are at least 20% of your monthly gross income (you may get up to three years of forbearance)

Mandatory forbearance can be renewed, but you must reapply and keep paying until it’s officially approved.

3. Private Loan Forbearance

Private lenders set their own forbearance policies. Some offer relief similar to federal programs, letting you pause payments for a short time—usually a few months.

However, the rules are different. You may face:

• Stricter qualification standards (like severe financial hardship)
• Shorter forbearance periods
• Higher interest during forbearance
• Added fees for applying or processing

Always check directly with your private loan lender to understand their specific terms and any potential costs involved.

Before choosing forbearance, whether federal or private, make sure you understand the consequences, especially how interest will be handled. Even while your payments are paused, interest often keeps growing, which can increase your total balance over time. Consider all your options and talk to your loan servicer before deciding.

Pros and Cons of Pausing Your Loan Payments

Pros

• Temporary Relief
• Avoids Default
• Flexibility

Cons

• Interest May Accrue
• Higher Long-Term Cost
• Temporary Solution

Other Options Besides Forbearance

While forbearance can offer short-term relief, it’s not the only solution for managing student debt. Several alternatives may provide better long-term financial stability depending on your circumstances.

1. Student Loan Forgiveness

If you work in public service or education, loan forgiveness might be an option. For example, the Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your federal student loans after you make 120 qualifying monthly payments while working full-time for a government or nonprofit employer.

Teachers may also be eligible for up to $17,500 in forgiveness on Direct Loans or FFEL loans if they teach full-time for five consecutive years at a low-income public school.

2. Loan Cancellation

You may be able to cancel a loan before it’s fully disbursed. If the loan has already been sent to your school, you might still cancel it within a specific cancellation window by contacting your school’s financial aid office.

Each school has different rules, but once canceled, the loan funds are returned to your servicer and you won’t owe interest or fees.

3. Loan Discharge

In rare situations, your federal loan may be completely discharged. Discharge is granted if:

• Your school closes while you’re enrolled or soon after you withdraw
• You become permanently disabled
• The borrower passes away

Discharges apply to Direct Loans, FFEL Program Loans, and Perkins Loans depending on the situation.

4. Income-Driven Repayment (IDR) Plans

For federal loan borrowers, income-driven repayment plans can make monthly payments more affordable. These plans base your payment amount on your income and family size, and can extend your loan term to 20–25 years.

If your income is low, your monthly payments could be significantly reduced—and any remaining balance may be forgiven at the end of the repayment period.

5. Loan Refinancing

Refinancing is an option for both federal and private loan borrowers. It involves taking out a new loan with a private lender to pay off one or more existing loans, ideally at a lower interest rate.

Refinancing can reduce your monthly payment, shorten your repayment term, or both. However, be aware that refinancing federal loans with a private lender means giving up benefits like forbearance, deferment, and income-driven repayment options.

Is Forbearance the Right Move for You?

Whether you’re still in school or have recently graduated, managing student loans can feel overwhelming. Forbearance offers a temporary break by pausing your monthly payments, giving you time to get your finances back on track without added stress.

Don’t let financial worries hold you back from pursuing your education. If you’re exploring private student loans or thinking about refinancing, consider what options like Ascent provide. Their loans come with flexible forbearance and deferment programs to support you when needed.

If you’re already repaying your loans and debating between forbearance or deferment, it’s smart to talk with a financial counselor at your school or contact your loan servicer. They can help you understand the benefits and drawbacks so you can make the best decision for your situation.

Frequently Asked Questions (FAQs)