Am I Eligible for Forbearance?
You may have never heard of the term forbearance before, but this is
a process in which many people are able to find the debt relief that they need.
Forbearance is generally only considered for those who are unable to make
their loan payments and do not qualify for deferment. During a period of
forbearance you will often not need to make any payments on your loan, or the
loan payments will be significantly lowered. Even if you are granted forbearance
you should keep in mind that you will still have to pay interest, which
is different than many deferred loans. If you don't pay this interest it
can be tacked onto your principal, causing you to become even more indebted.
If
you believe that you are eligible for forbearance you need to formally
apply for it with your lender. You will need to contact the lender
to determine what their process is for approving forbearance. You will likely
need to fill out forms and provide proof of income, but you should not assume
that you will be approved and stop making payments. Instead, you need
to continue to make payments until you have heard back from your lender.
You
may be eligible for forbearance if:
You are not able to make
your payments due to health problems
You are serving in a medical
or dentistry internship or residency
If you are serving in a position
that is listed under the National Community Service Trust Act
If
your monthly payments are equal to or more than 20% of your income
This
by no means an exhaustive list of all of the things that may qualify you for
forbearance. You should also know that a lender does not need to approve
you for forbearance, so you should not assume that it will be granted.
If you are having a problem making your payments you should simply get in contact
with your lender. Even if they are unwilling to grant you forbearance
they will likely be willing to work with you so that you can continue making payments
that fit within your budget.
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