Terms, conditions and steps to take for forbearance:

Discretionary forbearance

• If borrowers are willing but financially unable to make the required payments on their loans, they may request forbearance.
• Forbearance allows a borrower to suspend payments temporarily, unless the borrower requests reduced payments. The lender may grant forbearance of principal, interest or both.
• A signed forbearance agreement is required before granting a discretionary forbearance. When forbearance is granted, the borrower is responsible for repayment of accrued interest charges.

Administrative forbearance

• A lender may grant an administrative forbearance to borrowers who are delinquent at the time an authorized deferment is granted or who are less than 60 days delinquent on a loan at the time the loan is sold or transferred.
• If the student has borrowed a Federal Supplemental Loan for Students (SLS) loan and also has an outstanding Stafford loan, the student may postpone the repayment of the Federal Supplemental Loans for Students principal until the grace period for the Stafford lender loan has expired. During this period, the borrower is responsible for accrued interest, which may be capitalized (added to the principal).
• The student may request an aligned repayment verbally or in writing.

General

• Assist the student with the forbearance form during the exit interview.
• See sample forbearance letter.