Forbearance.

In plain English

Forbearance lets you temporarily stop or reduce your federal student loan payments when you are having trouble paying but do not qualify for deferment. You request it through your servicer. The important catch is that interest keeps accruing on every loan type during forbearance, including subsidized loans. When the forbearance ends, that built-up interest can capitalize, meaning it gets added to your principal so future interest is charged on a bigger balance. It is a real tool for avoiding missed payments, but it is usually more expensive than deferment.

01Why it matters

Forbearance can stop a missed payment from turning into delinquency or default, but because interest keeps stacking up, leaning on it for long stretches can quietly grow what you owe.

02The math, step by step

Money is tight for a few months but you do not qualify for a deferment. You call your servicer and request forbearance. Payments pause, but interest keeps accruing the whole time. If $1,000 of interest builds up and then capitalizes when forbearance ends, your principal goes up by $1,000 and every future interest charge is based on that higher balance. Whenever you can, paying at least the interest during forbearance keeps it from capitalizing.

03What this is NOT

04Receipts

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