Student Loan Forbearance
7 Questions About Federal Loan Forbearance
For most people looking at a student loan forbearance plan, they will need to have 7 questions touched on to ensure that they can avoid any potential nightmares that might happen.
If you are looking to understand the federal student loan forbearance process!
Then you are going to need to understand some of the basic elements of this procedure.
What You Need To Know!
Question 1: What is Loan Forbearance?
This is perhaps the most important topic to touch on. Loan forbearance is the process when your payments postponed or delayed for a period of time. This is perhaps the best choice for those who do not qualify for a deferment plan.
Question 2: Will I Automatically Qualify for Loan Forbearance When I Apply?
Just like a loan deferment, you will need to meet specific requirements to be approved for this process. Since loan forbearance is a serious item, the reasons why it will be approved are well defined.
When you do enter a forbearance plan, you will need to ensure that you follow directions as they come are require.
Question 3: Are There Mandatory Circumstances Where the Federal Government Must Approve It?
No, under no circumstances is the Federal Government required by law to grant you forbearance.
Question 4: Will I Need to Have Supporting Documentation?
Supporting documentation will be required for most of the circumstances that you are requesting your forbearance plan. Sometimes it may be a sign affidavit that is needed, while in other cases a letter from your doctor might be required.
Question 5: What Are the Reasons I Can Apply For Forbearance?
If you have any of the following reasons, you may be eligible to apply for this benefit. You should note that this is only a partial listing:
- Medical Problems
- Residency or Internship position in Medical or Dental profession
- Obligated to repay other federal student loans that will consume more than 20% of your income
Question 6: How Many Times Can I Apply for Forbearance?
Traditionally, your forbearance will run from 6 months to 1 year. You can run them consecutively, but you may only have a maximum of 36 months consecutively. You will need to be sure you check for the specifics of your particular federal student loan as in some cases, the maximum may be as short as 18 months.
Question 7: Who Do I Contact for this Process?
You will need to contact the holder of your loan to begin this process. This will traditionally be the bank or institution that has provided the loan that the government has insured.
You may be eligible to apply for:
- student loan forgiveness
- student loan deferment
- student loan consolidation
The forbearance process isn't one that is too complicated. By understanding these simple questions, you will have a better chance at having overall success with the process.
Just be sure you provide factual information and have all the information you need readily available before you begin the application process. That way there are no delays or surprises that might occur when you have started this process.
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