Forbearance on Student Loans: What You Need To Know
Balancing student loan payments with tuition, rent and daily expenses can feel overwhelming, especially when unexpected financial challenges arise. Whether it’s a sudden job loss, medical emergency, or simply not earning enough to stay afloat, you’re not alone. Many borrowers turn to temporary relief options to avoid falling behind.
One of the most common resources is forbearance on student loans. This option allows borrowers to pause or reduce their payments. But what does forbearance mean on student loans, and how does it compare to deferment? We’ll answer these essential questions and more below.
What is Forbearance?
What does forbearance mean for student loans? Here’s the answer: it refers to a temporary postponement or reduction of monthly student loan payments due to financial hardship or other qualifying circumstances.
While this option can provide short-term relief, interest continues to accrue throughout the forbearance period. That means the total amount you owe will increase unless you pay the interest during the forbearance period.
Loan Deferment vs. Forbearance: What’s the Difference?
Trying to decide between loan deferment vs. forbearance? Both offer a way to pause loan payments temporarily, but the differences matter, especially when it comes to interest.
During a deferment, subsidized federal loans don’t accrue interest. That’s a significant benefit for students with these loan types. On the other hand, forbearance causes interest to accrue across all loan types, whether federal or private. Unless that interest is paid during the forbearance period, it may be added to your loan balance.
So, which is better? This ultimately depends on your circumstances. If you qualify for deferment, especially on subsidized loans, it’s usually more cost-effective in the long run. However, if you don’t meet deferment requirements, the choice between deferment or forbearance becomes a matter of eligibility and necessity.
Both deferment and forbearance serve different needs. To make the most informed decision, know your loan type, ask your loan servicer questions, and carefully evaluate the long-term financial impact of both options.
Is Forbearance on Your Student Loans Bad?
Let’s talk about another common concern: Is forbearance on your student loans bad for your financial future?
In some cases, like sudden unemployment or medical emergencies, forbearance on student loans may be a smart, short-term strategy to stay in good standing. It helps you avoid delinquency, which can harm your credit and lead to long-term financial damage. However, it’s not ideal as a long-term solution.
As interest continues to accrue, forbearance can significantly increase the amount you owe if used repeatedly.
It’s not necessarily “bad,” but it comes at a cost. Use it sparingly and only when you’ve ruled out options like income-driven or alternative repayment plans.
When to Consider Forbearance
There are times when temporary hardship forbearance is the most realistic option. If you’re dealing with reduced income, an unexpected medical bill or are waiting to start a new job, a short pause can prevent your loan(s) from becoming delinquent or placed in default.
Some borrowers request a one-month reduced payment forbearance to keep up with their loans while transitioning between life stages. This is valid, especially if you intend to resume regular payments soon.
The key is communication. Talk with your loan servicer early, and remember that forbearance should be a bridge, not a crutch.
How Long Does a Forbearance on Your Student Loans Last?
For federal loans, forbearance can be approved in increments of up to 12 months. General forbearances have a lifetime cap, usually three years in total. Mandatory forbearances follow the 12-month rule but can be renewed if eligibility continues.
Forbearance for private loans depends on the lender and each loan program – contact your loan servicer for more information.
How to Apply for Student Loan Forbearance
If you’ve decided that forbearance is right for you, here are a few essential steps to take:
Identify the type of forbearance you’re eligible for.
Download the correct student loan forbearance form from your servicer’s website.
If you’re seeking a general forbearance request form, include all the details about your financial situation.
Gather necessary documents that support your case, such as a layoff letter, medical bills, or pay stubs.
Submit the completed form and documents to your loan servicer via mail, email, or online portal.
Continue making payments until you receive written confirmation that your request is approved.
Follow up regularly if you don’t hear back within a reasonable time frame.
Every loan servicer has slightly different procedures, so always check for any additional instructions. If your loans are serviced by Higher Education Servicing Corporation (HESC), you can download the application from your online account.
Keep Going — We’ll Help You Manage What’s Next
Knowing the difference between a deferment or forbearance can make a meaningful difference when you’re navigating student loan repayment. These options give you space when you need it most, whether you’re facing financial hardship, managing a life transition or simply needing time to get back on track.
At HESC, we help you make informed, confident decisions about your education and future. If we service your student loan and you need temporary relief, we encourage you to download the appropriate student loan forbearance form today to begin the process.
Explore the Texas Extra Credit Private Student Loan
At HESC, we offer the Texas Extra Credit Student Loan to help undergraduate and graduate students pay for college with a low-cost, private financing option. This loan is designed to support your education while giving you flexibility during repayment.
Explore our loan options to learn more about eligibility.