What Situations Let You Pause Your Student Loan Payments

Who can get forbearance on federal student loans

Forbearance is a pause on your loan payments that the loan servicer grants when you face a temporary financial hardship. You do not have to prove hardship to get mandatory forbearance — the servicer must grant it if you meet one of these conditions: you work in a public service job and are on an income-driven repayment plan, you are a medical or dental resident in training, you are on active military duty, or you are serving in the Peace Corps. The servicer handles the paperwork once you notify them of your status.

Discretionary forbearance is what most borrowers receive. The servicer can grant it if you request it and describe a financial hardship, but they decide whether to approve you. Common reasons servicers approve discretionary forbearance include job loss, a medical emergency, a natural disaster, or a temporary drop in income. You contact your servicer, explain your situation, and they tell you whether they will grant it and for how long.

Forbearance is available only on federal student loans — Direct Loans, Federal Family Education Loans (FFEL), and Perkins Loans. Private student loans do not have forbearance. If you have private loans, you would contact your lender directly to ask about payment pause options, which vary by lender and are not standardized.

Key Takeaways

• Mandatory forbearance is automatic if you work in public service with an income-driven plan, are a medical resident, serve on active military duty, or work for the Peace Corps.
• Discretionary forbearance requires you to contact your servicer, describe a financial hardship, and wait for approval — the servicer decides whether to grant it.
• During forbearance, you do not have to make payments, but interest still accrues on unsubsidized loans and may be added to your balance.
• Forbearance pauses your loans for a set period, usually three to six months, and you can request renewal if your hardship continues.
• Forbearance is different from deferment, which also pauses payments but has different may be able to access rules and interest treatment.

How long forbearance lasts and what happens to interest

Mandatory forbearance periods vary. If you are in public service, the forbearance lasts as long as you remain on an income-driven plan. If you are a medical resident, it typically lasts through your residency. Military duty forbearance lasts while you are on active duty plus six months after. Peace Corps forbearance covers your service plus three months after.

Discretionary forbearance is shorter. Your servicer usually grants it for three to six months at a time. If your hardship continues when that period ends, you can request a renewal, though servicers typically limit how many times you can renew in a row.

Interest treatment depends on your loan type. On subsidized loans, the government pays the interest that accrues during forbearance, so your balance does not grow. On unsubsidized loans, interest accrues and is added to your principal balance at the end of forbearance — this is called capitalization, and it means you will owe interest on that interest going forward. Parent PLUS loans and most private loans are unsubsidized, so interest accrues on them during any forbearance period.

When forbearance affects your credit and repayment timeline

Forbearance does not damage your credit score. Your servicer reports the account as in forbearance, not as delinquent or in default. This is different from missing payments, which would hurt your credit. If you are behind on payments and your servicer grants forbearance, it stops the delinquency clock and prevents default.

Forbearance does extend your repayment timeline. If you are on a standard 10-year repayment plan and take six months of forbearance, your loans will not be paid off until 10 years and six months from when you started. If you are on an income-driven plan with a 20- or 25-year timeline, forbearance adds to that as well. The extra time means more interest accrues overall, especially on unsubsidized loans.

Forbearance also pauses your progress toward Public Service Loan Forgiveness (PSLF). If you work in a may have access to public service job, you need 120 on-time payments to reach forgiveness. Months in forbearance do not count toward that 120, so forbearance delays when you reach forgiveness.

Forbearance versus deferment: what is different

Both forbearance and deferment pause your payments, but they have different rules for who qualifies and how interest is treated. Deferment is available if you are in school at least half-time, in a graduate fellowship program, in an approved apprenticeship, unemployed, or facing economic hardship. You must meet one of these specific conditions; you cannot get deferment just because you ask.

Interest treatment is the key difference. During deferment on subsidized loans, the government pays the interest. During deferment on unsubsidized loans, interest accrues but does not capitalize — you can pay it as you go or let it sit. During forbearance on unsubsidized loans, interest accrues and capitalizes at the end. This means deferment is usually better for unsubsidized loans if you may have access to for it, because you avoid the compounding effect of capitalized interest.

Deferment also counts toward PSLF if you work in public service, whereas forbearance does not. If you are chasing PSLF and may have access to for deferment, deferment is the better choice because it moves you closer to forgiveness while pausing payments.

How to request forbearance from your servicer

Contact your loan servicer directly — the servicer is the company that sends you your bill and processes your payments. You can find your servicer's name and phone number on your loan statement or at studentaid.gov by logging into your Federal Student Aid account. You can also call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243) and they will tell you who your servicer is.

When you contact your servicer, explain your financial hardship and ask for forbearance. If you may have access to for mandatory forbearance, tell them which category applies to you — for example, "I am on active military duty" or "I work for the Peace Corps." If you are requesting discretionary forbearance, describe your situation: job loss, medical emergency, reduced income, or other hardship. The servicer will tell you whether they can grant it and for how long.

Some servicers offer an online request form on their website. Others require a phone call or a written request. Ask your servicer which method they prefer. Keep records of any request you make — note the date, the servicer representative's name, and what they told you. If you do not hear back within a week or two, follow up with another call.

What happens when forbearance ends

When your forbearance period ends, your regular payment resumes. Your servicer will send you a notice before forbearance ends, telling you when your next payment is due. If you are still facing hardship, you can request another forbearance period or explore other options like income-driven repayment, which can lower your monthly payment based on what you earn.

If you do not resume payments when forbearance ends and do not request another pause, your loan goes into delinquency. After 90 days of missed payments, the loan is reported to credit bureaus and your credit score drops. After 270 days (about nine months), the loan goes into default, which can trigger wage garnishment, tax refund offset, and collection costs added to your balance.

Before forbearance ends, think about whether you can afford to resume payments. If you cannot, contact your servicer before the important date and ask about income-driven repayment plans, which may lower your payment to as little as $0 per month if your income is very low. Income-driven plans also count toward PSLF, unlike forbearance, so they are often a better long-term choice if you work in public service.

Frequently Asked Questions

Can I get forbearance if I am in default?

Yes. If your loan is in default, you can still request forbearance. Once forbearance is granted, it stops the default status and pauses collection activity. However, you will need to resume payments or enter a repayment plan when forbearance ends to stay out of default.

Does forbearance count toward Public Service Loan Forgiveness?

No. Forbearance pauses your progress toward the 120 payments needed for PSLF. If you work in public service, deferment or an income-driven repayment plan is better because both count toward forgiveness while you are paying or pausing.

What if my servicer denies my forbearance request?

If your servicer denies discretionary forbearance, ask them why and whether you may have access to for deferment instead. You can also ask about income-driven repayment plans, which lower your payment based on income. If you believe the denial was unfair, you can file a complaint with the Federal Student Aid Ombudsman at studentaid.gov/feedback-ombudsman.

Will forbearance hurt my credit score?

No. Forbearance is reported as a pause, not as a missed payment. Your credit score is not affected. However, if you miss payments before forbearance is granted, those missed payments will hurt your score.

Can I pay my loans while in forbearance?

Yes. You can make voluntary payments during forbearance even though you are not required to. Paying during forbearance reduces the principal balance and the amount of interest that accrues, which saves you money over time.