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What does it mean when your student loans are in forbearance?

3 Answers

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  • 2 months ago
    Favourite 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. 

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  • nancy
    Lv 7
    2 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 .

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  • Squid
    Lv 7
    2 months ago

    It means you won't have any penalities for missing a payment.  You'll still have to pay it all back eventually.

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