Consolidating student loans and forbearance
For mandatory forbearance applications, you need to complete the form that matches your situation, such as the Student Loan Debt Burden Forbearance Form, Medical/Dental Residency Form, or Ameri Corps Service Form.
Send the form with documentation to back up your claim to your loan servicer.
If you defer your student loans, you can stop making payments without entering default or damaging your credit.
That can free up money in your budget to pay for other demands, such as medical bills or rent.
When you apply for deferment or forbearance, remember that you must keep making student loan payments until your loan servicer notifies you that they’ve accepted your request.
Otherwise, you could become delinquent on your loans.
There are two types of forbearance: mandatory and discretionary.
With mandatory forbearance, the government requires loan servicers to grant you a forbearance if you meet one of the following criteria: Under discretionary forbearance, your loan servicer decides whether or not you qualify.
If you qualify for forbearance, you can stop making payments for up to 12 months.By getting your payments reduced or eliminated for a short time, you can get your finances in order without falling behind on your loans.Forbearance can be a useful option if you’re facing money problems, but there are some consequences to consider.If your loans are unsubsidized, the government won’t cover the interest that accrues on your debt.That means your loan balance can grow while you’re in deferment and you can end up paying back thousands more in interest once deferment is over.