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Key Facts
- Federal level: Federal student loan forbearance temporarily pauses or reduces required payments; it does not cancel the debt.
- Federal level: Interest generally continues to accrue on all federal student loans during forbearance.
- Federal level: General forbearance is discretionary, while mandatory forbearance must be granted when a borrower proves eligibility under a listed federal category.
- Federal level: A forbearance period may not count toward Public Service Loan Forgiveness or income-driven repayment forgiveness unless a specific rule provides otherwise.
- Federal level: Statutory changes limit forbearance for Direct Loans first disbursed on or after July 1, 2027 to nine months in any 24-month period.
A forbearance loan is not a separate kind of loan. In federal student-aid terminology, forbearance is a temporary status that allows required payments on an existing loan to stop or decrease. The loan remains outstanding, and interest usually continues to grow.
Forbearance can prevent a current loan from becoming delinquent while the status is active, but it is designed as short-term relief. It differs from changing to a lower-payment plan, obtaining a deferment, discharging debt, or resolving a loan that is already in default.
What happens during federal student loan forbearance
Required principal payments may be paused or reduced for the approved period. Interest continues to accrue on Direct Subsidized, Direct Unsubsidized, PLUS, and Consolidation Loans during forbearance. Unpaid interest can increase the total cost and, when capitalization is permitted, can be added to principal.
The General Forbearance Request states that a loan holder may grant up to 12 months for one request. A holder may set cumulative limits for Direct and FFEL loans, while general forbearance on Perkins Loans has a three-year cumulative limit.
General and mandatory forbearance are not the same
General forbearance may be considered for financial difficulty, medical expenses, employment change, or another reason acceptable to the loan holder. Because it is discretionary, submitting a request does not itself place the loan in forbearance.
Mandatory forbearance applies when a borrower satisfies a category established by law or regulation and supplies required documentation. Categories have included qualifying medical or dental internships and residencies, certain national-service awards, teacher-loan-forgiveness service, National Guard duty, Department of Defense repayment eligibility, and a qualifying federal student-loan debt burden.
Forbearance differs from deferment
Both statuses can pause payments, but their interest treatment differs. During many deferments, interest does not accrue on qualifying subsidized loans; during forbearance, interest generally accrues on every covered loan type. This guide to student loan deferment explains that separate status.
Eligibility also differs. Deferment uses defined circumstances such as certain enrollment, unemployment, economic hardship, military service, or rehabilitation training. General forbearance turns on the holder’s discretion, while mandatory forbearance uses its own federal categories.
Forgiveness progress and loan status matter
Months in ordinary forbearance generally do not count as qualifying payments for Public Service Loan Forgiveness or income-driven repayment forgiveness. Special administrative adjustments or program-specific rules can produce different treatment, so the status code and applicable dates matter.
Forbearance also is not the ordinary way to cure default. A borrower whose federal loan is already in default may need a distinct federal process such as rehabilitation or consolidation before regaining ordinary repayment benefits.
Federal rules are changing for newer loans
Congress amended the Direct Loan statute in 2025. For a Direct Loan made on or after July 1, 2027, forbearance will be limited to the statutory category cross-referenced in 20 U.S.C. § 1087e(f)(8) and may not exceed nine months in any 24-month period.
That future rule does not automatically rewrite the terms governing every older loan. Loan type, first-disbursement date, reason for relief, and current Department of Education instructions determine which framework applies.
