Federal Student Loan Forbearance

The top of this article references forbearance rules that will soon change. Scroll down for changes that will take effect for new borrowers on July 1, 2027.

A forbearance is a temporary pause in your loan repayment. You have a limited amount of forbearance available. Save it for when you really need it. If you’ve been granted a forbearance on your federal student loan(s), you won’t have to make a payment, or you can temporarily make a smaller payment. However, you probably won’t be making any progress toward forgiveness or paying back your loan. As an alternative, consider income-driven repayment. Your payment on an income driven plan might be $10 or less.

You must continue making payments on your student loan(s) until you have been notified that your request for forbearance has been granted. If you stop paying and your forbearance is not approved, your loan(s) will become delinquent, and you may go into default.

Interest Accrues During a Forbearance

If you get a forbearance, you’re still responsible for the interest that accrues while you’re not making payments. After your forbearance ends, you’ll pay off your accrued interest through normal monthly payments. For most loan types, interest won’t capitalize at the end of a forbearance.

How to Apply for a Forbearance

Most types of forbearance are not automatic. To apply for a forbearance, you must:

  1. identify which type of forbearance you’re requesting;
  2. fill out the form for that forbearance type;
  3. gather any documents needed to show that you meet the eligibility requirements for that forbearance type; and
  4. send the filled-out form and documents to your federal student loan servicer.

There are two main categories of forbearance: “general” and “mandatory.”

General Forbearance

Your loan servicer decides whether to grant a request for a general forbearance. For this reason, a general forbearance is sometimes called a “discretionary forbearance.”

You can request a general forbearance if you are temporarily unable to make your scheduled monthly loan payments for the following reasons:

  • Financial difficulties
  • Medical expenses
  • Change in employment
  • Other reasons acceptable to your loan servicer

Loan Programs Eligible for General Forbearance

General forbearances are available for Direct Loans, Federal Family Education (FFEL) Program loans, and Perkins Loans.

Duration of a General Forbearance

For loans made under all three programs, a general forbearance may be granted for no more than 12 months at a time. If you’re still experiencing a hardship when your current forbearance expires, you may request another general forbearance. However, there is a cumulative limit on general forbearances of three years.

Mandatory Forbearance

If you meet the eligibility requirements for a mandatory forbearance, your loan servicer is required to grant the forbearance. You may be eligible for a mandatory forbearance in the following circumstances.

Note: The mandatory forbearances discussed below apply only to Direct Loans and FFEL Program loans unless otherwise noted.

  • AmeriCorps
  • Department of Defense Student Loan Repayment Program
  • Medical or Dental Internship or Residency
  • National Guard Duty
  • Student Loan Debt Burden
  • Teacher Loan Forgiveness

Duration of Mandatory Forbearances

Mandatory forbearances may be granted for no more than 12 months at a time. If you continue to meet the eligibility requirements for the forbearance when your current forbearance period expires, you may request another mandatory forbearance.

FORBEARANCE RULES ARE CHANGING!

The One Big Beautiful Bill Act (OBBBA) significantly restricts federal student loan forbearance and deferment for new loans after July 1, 2027, eliminating economic hardship and unemployment deferments and limiting forbearance to 9 months in any 24-month period, a reduction from previous rules that allowed longer deferments and up to 3 years of general forbearance. These changes aim to streamline repayment but reduce safety nets, shifting borrowers toward new plans like the Repayment Assistance Plan (RAP) for future loans.

Key Changes to Forbearance & Deferment:

  • Elimination of Specific Deferments: Economic hardship and unemployment deferments become unavailable for loans disbursed on or after July 1, 2027.
  • Stricter Forbearance Limits: For new loans, forbearance is capped at 9 months within any 24-month (2-year) period, replacing the previous 12-month increments and three-year cumulative limit.
  • Impact on Current Borrowers: Existing borrowers with no new loans after July 1, 2026, can continue in older plans (like IBR) with existing limits until June 30, 2028, and then potentially stay in some plans, but new rules apply to new borrowing.

Why These Changes Matter:

  • Reduced Safety Net: These restrictions cut back on options for borrowers facing temporary financial difficulties, making it harder to pause payments.
  • Shift to New Plans: The OBBBA pushes borrowers toward new income-driven options like the RAP (effective July 2026), which has different interest subsidy rules.

Effective Dates:

  • Most of these forbearance changes start July 1, 2027, affecting loans disbursed on or after that date.

In essence, OBBBA tightens access to payment pauses for future borrowers, while current borrowers have a transition period before the stricter rules for forbearance and new IDR plans fully take effect.