A forbearance is a temporary postponement of principal payments; you are responsible for the interest that accrues on your loan(s). If you choose not to pay the interest, it will be added to the loan principal the end of the forbearance period.
A Debt Burden Forbearance allows you to temporarily delay principal payments when your total student loan payments meet or exceed 20% of your monthly income. You may be eligible for three years of Debt Burden Forbearance, which is granted in 12-month increments. You may also qualify for a Debt Burden Forbearance if you have no income, receive public assistance, or are unemployed and no longer qualify for an Unemployment Deferment.
An In-School Forbearance allows you to defer the repayment of your PLUS Loan for up to 48 months while your child is in school. You may defer the principal only or the principal and the interest. (Interest will be added to principal.)
A Lender-Optional Forbearance is a decision made by your lender to change the terms of repayment for a period of time due to a financial hardship on your part that is not otherwise covered by other deferment and forbearance options.
In all cases, the payer must apply for the forbearance and receive approval before reducing or stopping payment.
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PLUS Loan Forbearance
