What does it mean when your student loans are in forbearance?
- Donnie PorkoLv 72 months agoFavourite answer
Due to hard times, lenders aren’t making students pay their monthly payment. You still have to pay it back when the crisis is over.
- nancyLv 72 months ago
It means that the lender has agreed to postpone your payments for a period of time, usually because you are having financial difficulty and are unable to make the payments. However, depending on the type of loan, even though you aren't making payments, interest may still be accruing. That accumulated interest will be added to the principal of the loan when you enter repayment again. This will increase the amount that you owe, so you may find that your payments will be larger. In effect, you will be paying interest on the interest. Forbearance is a good tool to use when you hit a particularly rough patch, but you should only use it if you absolutely have to because it doesn't solve problems--it only postpones them .
- SquidLv 72 months ago
It means you won't have any penalities for missing a payment. You'll still have to pay it all back eventually.