Forbearance

A forbearance is a temporary postponement of payments for up to 12 months due to financial difficulties. If interest is not paid during the forbearance, it will accrue and be capitalized to your balance at the end of the forbearance. There are three types of forbearances: discretionary, mandatory and administrative.

You may be granted a mandatory forbearance under the following conditions:

• Financial hardship and/or illness
• Serving in a medical or dental internship or residency program
• Serving in a national service position for which you receive a national service education award under the National Community Service Trust Act of 1993
• Qualifying for a partial repayment of your loans under the Student Loan Repayment Program (Department of Defense)
  
• Having a debt burden on Title IV loans that collectively exceeds 20% of your total monthly gross income