A period of time granted at the option of the lender during which the borrowers are temporarily permitted to make lower payments. At a minimum, borrowers are obligated for payments of interest during periods of forbearance.
lender's postponement of foreclosure in order to give the borrower time an opportunity to make up for overdue payments.
Submenu An arrangement to postpone or reduce a borrower's monthly payment amount for a limited and specified period or to extend the repayment period. You are charged interest during a forbearance and must continue paying the interest charges during the forbearance period. Forbearance is granted at the lender's discretion, usually in cases of extreme financial hardship or other unusual circumstances when the borrower does not qualify for a deferment. You can't receive a forbearance if your loan is in default.
The act of refraining from enforcing a legal right, obligation, or debt.
The waiting for payment of a debt by a creditor after the debt becomes due.
The act of refraining from legal action when a mortgage loan is in arrears. This is usually only granted when a satisfactory payment arrangement is made by the borrower with the mortgage company. ( For example, a borrower that missed a payment might make 1 Â1/2 times their normal payment for the next 2 months to pay back the amount delinquent rather than make 2 payments the next month. This arrangement must be agreed upon with the lender in writing.)
The temporary suspension or altering of a previously agreed upon loan repayment schedule due to unusual circumstances or financial hardship and granted at the discretion of the lender. The lender is required to provide three year maximum annual renewable forebearance if your loan debt burden equals or exceeds 20% of your gross income.
Authorized period of time during which the holder of your loan allows you to postpone repayment because of financial difficulty.
Voluntarily refraining from enforcing a legal right or any other right.
The act of refraining from taking legal action despite the fact that payment of a promissory note in a mortgage or deed of trust is in arrears. It is usually granted only when a borrower makes a satisfactory arrangement by which the arrears will be paid at a future date.
Permission, based on need, to temporarily: a) lower your payments; b) extend your repayment period; or c) suspend payments. Interest charges continue to accrue during a forbearance period.
A temporary end to or reduction of payments. A forbearance is granted in cases of financial difficulty when a student is not eligible for a deferment. However, interest continues to accrue on the account.
Forbearance means the temporary postponement of payments such as allowing for an extension of time for making payments, or accepting smaller payments than previously scheduled. It is granted to reduce the incidence of default and simplify the administration of the loan programs by lenders.
Forbearance is a period of time in which payments of principal are deferred while interest payments are not deferred. The interest will continue to accrue, and if not paid, may be added to your principal, increasing the total amount borrowed and the amount of interest you will pay. To determine whether or not you are eligible for a deferment or forbearance, contact your lender or loan servicer. Federal Perkins Loans--Contact the Penn State Office of Loans and Scholarships at 814-865-0461 for specific information on repayment, deferment, and forbearance. Federal Stafford Loans--Contact the Student Loan Servicing Center at 800-692-7392 or your Stafford Loan servicer for specific information on repayment, deferment, and forbearance. Federal Parent PLUS Loan--Parents may contact Edamerica at 866-800-4778 for specific information on forbearance options up to 4 years (Edamerica PLUS borrowers only). See also deferment.
When an FFEL lender (or the U.S. Department of Education for Direct Loans) allows a TEMPORARY cessation of payments or reduction of payment amounts for subsidized or unsubsidized Federal Stafford, Federal PLUS, Federal Perkins, or Federal Direct Loans. In doing so, it allows an extended period for making payments or accepts smaller payments than were previously scheduled. Forbearance may be given for circumstances that are not covered by deferment. Interest expenses continue to accrue during forbearance. Forbearance is an option of the FFEL lender or ED. However, there are a few circumstances where forbearance is mandatory with FFEL borrowers. See CFR 682.211(i) and CFR 682.211(j). Compare DEFERMENT (OF A LOAN).
A specified and temporary period during which no principal loan payment is due, or a period of time during which the lender agrees to accept smaller payments.
A temporary period of suspension of payments on a federal or direct loan after repayment has begun, and if the student does not qualify for deferment
An arrangement to postpone payments on principal for a period of time but interest continues to accrue and must be paid, either monthly or at the end of the forbearance period.
An authorized period of time during which the lender agrees to temporarily postpone a borrower's loan repayment obligation. At the borrower's request, an extension of time or smaller monthly payments may be authorized by the lender. Forbearance is granted at the lender's discretion when a borrower demonstrates good intentions of repaying but is temporarily unable to do so. A borrower must request forbearance from the lender. Interest continues to accrue while loans are in a forbearance status.
Creditors may grant forbearance of loan payment obligations in the event of certain hardships (such as severe medical problems). During any forbearance period granted by the creditor, the borrower is excused from making payments on the loan.
The opportunity to suspend repayment of the principal when the borrower is unable to meet loan repayment obligations for reasons of hardship not covered by deferment. Interest continues to accrue on the unpaid principal balance of the loan. A minimum payment must be made on all accrued interest during the period in which the borrower is in forbearance. Close
The process by which a repayment schedule can be restructured under certain conditions. The amount of the monthly payment may be temporarily reduced or suspended, or months may be added to the repayment term. You must contact your lender to receive a forbearance.
Forbearance is a way to postpone or reduce the payments on a student loan. Forbearance differs from a deferment in that it is not a legal requirement; it is given at the lender’s (or loan holder’s) discretion. (See also Deferment).
A term referring to the act of refraining from taking legal action despite the fact that a mortgage is in arrears (delinquent).
Agreement between lender and borrower that legal action will not be taken against the borrower if the borrower agrees to make up the payments in arrears by a specific date.
The agreement by your lender to temporarily postpone or reduce your monthly payments and voluntarily refrain from foreclosing on your property.
Temporary postponement or reduction of student loan payments, based on financial hardship during repayment period. Awarded on a case-by-case basis through lender or loan servicer, the borrower will still be responsible for paying the interest that accrues during the forbearance period. If you're unable to make payments on your federally guaranteed student loan for reasons such as unexpected personal problems or poor health and you don't qualify for a deferment, you may request forbearance of loan payments.
A temporary end to or reduction of payments which may be granted in cases of financial difficulty when you are not eligible for a deferment. Interest continues to accrue on your account.
good-natured tolerance of delay or incompetence
a delay in enforcing rights or claims or privileges; refraining from acting; "his forbearance to reply was alarming"
a form of deferment where the lender allows the borrower to postpone repaying the principal, but requires that the borrower continue to repay the interest charges
a form that can be obtained and used to temporarily suspend or reduce your monthly loan payments
an agreement (at the lender's option) to accept a temporary cessation of loan payments, an extension of time for making payments, or a smaller monthly payment than was previously scheduled
an agreement with your lender to postpone payments when you are having financial difficulties but are not eligible for a deferment
an approved general delay from making payments for a set period of time but not for any particular reason
an option available to students that are not eligible for a deferment
a period of time during which your lender temporarily reduces or suspends your regular payments
a period of time when principal payments are not due but interest is accruing against the loan
a special repayment plan where the lender arranges payments such that it will allow the homeowner to make mortgage payments after the financial crisis
a temporary postponement or reduction in loan payments when a person is unable to make loan repayments for health reasons or other acceptable reasons and does not qualify for a deferment condition
a temporary suspension of or reduction in your student loan payments
A period during which your monthly loan payments are temporarily suspended or reduced. You may qualify for forbearance if you are willing but unable to make loan payments due to certain types of financial hardships.
Your payments are postponed for a short time during financial difficulty.
Period of time, often following grace and deferment, during which a borrower may either a) make payments lower than those scheduled or b) delay repayment completely for a designated period of time, usually 6 months to one year. Borrowers must apply with their loan servicer for forbearance. Forbearance periods are usually loan specific, and forbearance provisions usually vary by loan type. Interest accrues on all loans during forbearance (including loans formerly subsidized), interest which, if not paid during forbearance, will be capitalized at the end of each forbearance period.
Agreement between the lender and the borrower to permit the temporary cessation of principal payments or to accept lower payments than those required in the terms of repayment.
At a lender's option, an agreement to accept a temporary cessation of loan payments, an extension of time for making payments, or smaller payments than were previously scheduled. Forbearance may be given for circumstances that are not covered by deferment that adversely affect the borrower's ability to meet loan payment obligations.
An authorized period of time during which the loan holder allows the borrower to postpone repayment because of financial difficulty.
A period of time during which your lender temporarily suspends or reduces your loan payments. Forbearance is usually granted to borrowers without deferment eligibility. You are responsible for all interest that accrues during forbearance. Interest may be paid as it accrues during forbearance or may be added to your principal.
Federal student loan repayment option that allows the borrower to temporarily postpone or reduce the monthly payment of the loan. Regardless of the loan type, interest continues to accrue during the forbearance period.
Temporary postponement or reduction of loan payments, based on financial hardship during the repayment period. Forbearance is awarded on a case-by-case basis through the lender or loan servicer, on behalf of the lender.
Refraining from taking action, even though a mortgage may be in default.
The lender agrees to accept a temporary rest from loan payments, an extension of time for making payments, or smaller payments that were previously scheduled based on hardship.
Temporary adjustment to repayment schedule for cases of financial hardship.
The approved temporary suspension of loan payments due to financial hard-ship, during which interest continues to accrue.
The temporary postponement or reduction of student loan payments. A forbearance is generally offered at the discretion of the lender. During forbearance, the borrower is responsible for all accrued interest.
The temporary postponement of payments, including an extension of time for making payments, or acceptance of smaller payments than previously scheduled. It is granted by lenders to reduce the incidence of default and simplify the administration of the loan programs.
A temporary agreement between the lender and borrower to postpone or reduce monthly loan payments for a specified period of time due to certain circumstances.
Forbearance is a lender's granting of a temporary reduction or cessation of loan payments. Forbearance is often granted to student-loan borrowers who face an unanticipated financial hardship. During the period of forbearance, interest is added to the loan balance.
An arrangement at the option of the lender to defray or reduce principal payments for a limited and specified period if borrower is having financial difficulties. Interest continues to accrue during the forbearance period, and may either be paid or capitalized.
period of time (usually after a deferment or grace period) where the borrower can make significantly lower monthly payments or defer payments for up to a year. Interest is accrued during this period which will capitalize at the end of the forbearance period if not paid during. Forgiveness - Certain Federal loans are eligible to be discharged, or cancelled, for a variety of reasons. Most of these involve choice of working in certain designated professions, locations or programs.
A special arrangement between the borrower and lender in which the lender allows the borrower to temporarily stop making payments or to make smaller payments than would otherwise be required.
An agreement the borrower enters into with the lender to postpone making loan payments or reducing the amount of loan payments for a time. Interest continues to accumulate during any granted forbearance periods whether the loan is subsidized or not, unlike a deferment, when no interest accrues on subsidized loans.
When a lender allows the borrower to temporarily postpone repaying the principal, but interest continues to accrue, even on subsidized loans; not for loans in default.
a temporary delay of principal payments for a specific period of time.
Refraining from doing something, or promising not to do something that the individual has a legal right to do.
An arrangement, typically at the discretion of the lender, to delay payments, allow for an extension of time in making payments or accept smaller payments than previously scheduled for a limited, specified period of time if a borrower is having difficulties that impair his/her ability to repay the loan.
When a lender pushes back foreclosure to give the borrower time to get caught up on overdue payments.
A temporary postponement or extension of payments or an agreement to reduce payments by special arrangement between the borrower and the lender.
The act on the part of a lender (mortgagee) of refraining from taking legal action despite a mortgage being in a state of default.
A lender's act of refraining from taking legal action despite the fact a mortgage is in arrears. It’s usually granted when a mortgagor makes a satisfactory arrangement by which the arrears will be paid at a future date.
A period in which a lender suspends regular loan payments. Interest charges accumulate and are added to the balance at the end of the forbearance period. Forbearance is usually granted for financial hardship. NIH LRP will repay the interest charges that accumulate while a loan is in forbearance.
An agreement between borrower and lender to delay or reduce loan payments because of financial hardship. Interest continues to accrue during forbearance.
A lender's agreement to postpone foreclosure in order to give a borrower time to catch up on overdue payments
A period of time during which a borrower's principal repayment obligation is temporarily postponed for a mutually agreed upon reason between the borrower and lender. Payment of interest which accrues on the account continues to be the responsibility of the borrower.
Prior to foreclosing on a property, a lender may agree to accept lower payments than originally agreed upon or added missed payments to the end of loan to help a borrower avoid foreclosure. This is normally handled by the lender's Loss Mitigation Department.
If you are unable to meet your repayment schedule but are not eligible for a deferment, you may receive forbearance for a limited and specified period. During forbearance, your payments are postponed or reduced.
Temporarily allows a borrower to postpone principal payments on a loan due to financial hardship. However, the borrower is still responsible for the interest that accrues during the forbearance period.
The lender's postponement of legal action when a borrower is delinquent. It is usually granted when a borrower makes satisfactory arrangements to bring the overdue mortgage payments up to date.
A temporary cessation of repayment of loans allowing an extension of time for making loan payments, or accepting smaller loan payments than were previously scheduled.
A method of putting off loan payments, such as for a credit card, for 6 month to a year, based on financial hardship. You can renew forbearance on a yearly basis for a maximum of three years.
The act by the lender of delaying foreclosure or legal action on a delinquent mortgage loan.
When dealing with student loans this is an option that allows you to defer your loan payments, but during this postponement of payments the loan balance still accrues interest. Most student loans that allow forbearance only do so for a specified period of time.
a temporary postponement of principal and interest payments during which the borrower may pay only the interest on the loan. If the borrower chooses not to pay the interest, it will be capitalized at the end of the loan period.
An authorized period of time during which the lender agrees to temporarily postpone a borrower's principal repayment obligation. Interest continues to accrue and usually must be paid during the forbearance period. Forbearance may be granted at the lender's discretion when a borrower is willing to repay their loan but is unable to do so.
Permission to postpone or reduce payments.
When the lender agrees to temporarily postpone a borrower's principal repayment obligation for a period of time, this is called "Forbearance." Interest continues to accrue on the loan during the forbearance period.
Grace period given when a lender postpones foreclosure to give the borrower time to catch up on overdue payments.
During a forbearance the lender allows the borrower to temporarily postpone repaying the principal, but interest charges continue to accrue, even on subsidized loans. The borrower must continue paying interest charges during the forbearance period. Forbearances are granted at the lender's discretion, usually in cases of extreme financial hardship or other unusual circumstances when the borrower does not qualify for a deferment. Forbearance will not be granted if the loan is in default.
A special temporary signed payment arrangement for an amount other than your regular monthly payment. This is typically used when a borrower doesn't qualify for a deferment.
A period of time (six months to no more than one year at a time) when 1) a borrower is not required to make payment on the loan, or 2) the scheduled payment will be reduced. Interest accrues on all loans during forbearance.
Any arrangement that delays foreclosure action.
An arrangement to postpone or reduce a borrower's monthly payment amount for a limited or specified period, or to extend the repayment period. The borrower is charged interest during a forbearance.
The permission to postpone, reduce or extend loan payments because of serious economic hardship.
A period of time during which the borrower is permitted to temporarily cease making payments or reduce the amount of the payments. The borrower is liable for the interest that accrues on the loan during the forbearance period. Some forbearances are entitlements for eligible borrowers; others are granted at the discretion of the lender.
A temporary reprieve from making your agreed upon payments due to financial difficulty.
A forbearance is a condition where the lender allows the borrower to postpone repaying the principal of their loan, but requires the borrower to continue paying the interest charges.
A temporary cessation or reduction of payments while interest continues to accrue on your account. A forbearance is granted at the lender's discretion.
Is a period of time a lender allows the borrower to temporarily postpone repaying the principal, but the interest charges continue to accrue, even on subsidized loans. Forbearances are granted at the lender's discretion, usually in cases of extreme financial hardship or other unusual circumstances when the borrower does not qualify for a deferment.
The lender's postponement of foreclosure to give the borrower time to catch up on overdue payments.
act by a lender of refraining from taking legal action on a mortgage that is delinquent. (a workout plan of repayment)
A forbearance is a period of time when you do not have to make payments on your loan because special circumstances exist and you do not qualify for a deferment.
A postponement of payment on a loan, typically if the borrower doesn't qualify for a deferment and is unable to make payments for a reason such as poor health. Interest continues to accrue during forbearance.
A period of time during which a borrower, who is willing but unable to make payments and who does not qualify for a deferment, is permitted to temporarily cease making payments or reduce the amount of payments. Some forbearances are entitlements for eligible borrowers, while others are granted at the discretion of the lender. The borrower is always responsible for repayment of accrued interest charges. The borrower can make interest-only payments, or the interest will be capitalized (added on to the principal). Click here for more information on forbearances. Back to glossary main page
A postponement of foreclosure commonly occurs because the borrower has made arrangements to pay the overdue amount.
The postponement for a limited time of a portion or all of the payments on a loan in jeopardy of foreclosure. See moratorium.
A condition under which a lender allows a borrower to temporarily stop making payments on a loan or take an extension of time for making payments or agrees to accept smaller payments than previously scheduled.
A borrower who is willing but unable to make payments, and who does not qualify for a deferment, may request a forbearance from the lender. Forbearance allows temporary cessation of payments or smaller payments for a specific length of time. The lender may grant forbearance of principal,interest or both. The borrower is always responsible for repayment of accrued interest charges. The borrower can make interest-only payments, or the interest will be capitalized (added on to the principal).
The approved temporary suspension, reduction, or extension of loan payments due to a financial hardship. Interest continues to accrue during periods of forbearance.
The lender may grant you forbearance in Special circumstances. Forbearance may allow you to temporarily stop making loan payments or receive an extension on loan payments.
Temporary delay or reduction of loan payments agreed to by the lender and borrower. Interest continues to accrue during forbearance.
Suspension or decrease in payments. During a forbearance, the government will not pay the interest accrual
The act of a creditor who refrains from enforcing a debt when it falls due. Various government credit programs, under specific conditions, offer borrowers certain protections against foreclosure.
At the lender's option, an agreement to accept a temporary cessation of loan payments, smaller payments than were previously scheduled, or an extension of time for making payments. Forbearance may be given for circumstances not covered by deferment that adversely affect the borrower's ability to meet loan payment obligations.
A lender voluntarily accepts payments that are lower than originally agreed in the loan documents for a limited period of time in order to allow the borrower to recover financially. The borrower must eventually repay the missing or reduced payments, as well as all the other remaining payments on the loan.
A course of action a lender may pursue to delay foreclosure or legal action against a delinquent borrower.
When foreclosure on a property is delayed because the borrower has arranged to pay the amount in arrears.
Delaying foreclosure, usually because the borrower has arranged to pay the amount in arrears.
A special arrangement between the borrower and lender (at lender's option) which may allow the borrower to temporarily stop making payments, obtain an extension for making payments, or make smaller payments than originally scheduled.
When loan payments are temporarily postponed because of the borrower's financial hardship. During a forbearance interest continues to accrue on the loan.
The postponement for a limited time of a portion or all the payments on a loan when a borrower is delinquent.
The approved temporary suspension of loan payments due to a financial hardship during which interest continues to accrue.
An authorized period of time during which the lender agrees to temporarily postpone a borrower's total loan repayment obligation. At the borrower's request, an extension of time or smaller monthly payments may be authorized. Forbearance is granted at the lender's discretion when a borrower demonstrates good intentions of repaying but is temporarily unable to do so. A borrower must request forbearance from the lender. Forbearance does not alter the repayment status of the loan and interest continues to accrue.
A temporary postponement of repaying the principal on your loan, usually because of economic hardship. Must be applied for with your loan holder.
During a forbearance the lender allows the borrower to temporarily postpone repaying the principal, but the interest charges continue to accrue, even on subsidized loans. The borrower must continue paying the interest charges during the forbearance period. Forbearances are granted usually in cases of extreme financial hardship or other unusual circumstances when the borrower does not qualify for a deferment. You can not receive a forbearance if your loan is in default. Forbearance differs from a deferment in that it is not a legal requirement; it is given at the lender's discretion.
Refraining from action by a creditor against the debt owed by a borrower after the debt has become due.
The act by the lender of refraining from taking legal action on a mortgage loan that is delinquent.
The act of refraining from taking legal action despite the fact that the mortgage is in arrears. It is usually granted only when a mortgagor makes satisfactory arrangements to pay the amount owed at a future date.
An effort made by the lender to offer the borrower a method of, or alternatives to, making a loan current if it is in default.
Postponement of payments or reduction in monthly payments for a limited, specified period of time during which a borrower is unable to make payments.
A special agreement between bank and borrower to delay or reduce monthly loan payments because of financial hardship.
Permitting the temporary halting of loan repayments, allowing an extension of time for making loan payments, or accepting smaller loan payments than were previously scheduled.
Postponement of payments for six months to one year due to economic hardship. A forbearance period may be renewed annually for up to three years. Interest accrues regardless of whether the loan is subsidized or unsubsidized and is added to the loan balance at the end of the forbearance period.
Legal permission to suspend payments on a federal student loan. Forbearance may be granted in the case of financial hardship.
can be used to temporarily suspend or reduce monthly loan payments. Borrowers may qualify for forbearance if they are willing but unable to make loan payments due to certain types of financial hardships.
A grace period allotted by a lender which postpones foreclosure and gives the borrower time to bring mortgage balance current.
If you're unable to make payments on your Direct Loan for reasons such as unexpected personal problems or poor health and you don't qualify for a deferment, you may request forbearance of loan payments. For more information, see our Payment Relief page.
A temporary postponement of principal and interest payments. Qualification is determined by Great Lakes Higher Education (800) 236-4300. The borrower may choose to continue to pay interest payments on the loan, or if not, interest will be capitalized at the end of the period.
The temporary cessation of payments, allowing an extension of time for making payments, or accepting smaller payments than were previously scheduled. Interest will continue to accrue during any period of forbearance.
A forbearance is a period of time during which borrowers may temporarily postpone or make smaller payments. There are forbearances that are entitlements for eligible borrowers. Most forbearances are granted at your lender's or servicer's discretion either verbally or in writing when you apply for the forbearance. Forbearance periods are excluded from the maximum repayment period, which can extend the loan term. It's important to remember that borrowers are responsible for the interest that accrues during the forbearance period, regardless of loan type.
A policy of restraint in taking legal action to remedy a default or other breach of contract, generally in the hope that the default will be cured, given additional time. Actions a lender may take to delay foreclosure or legal action against a delinquent borrower.
An action a lender may take to delay foreclosure or legal issues with a delinquent borrower.
A special arrangement whereby a lender may delay principal and/or interest payments to relieve a borrower's financial hardship during the repayment period.
Voluntarily refraining from doing something, such as asserting a legal right. For example, a creditor may forbear on its right to collect a debt by temporarily postponing or reducing the borrower's payments.
Agreement not to initiate legal proceedings against a delinquent mortgagor provided the mortgagor complies with alternate repayment arrangements.
A postponement of loan payments, granted by a lender or creditor, for a temporary period of time. This is done to give the borrower time to make up for overdue payments.
Forbearance is temporary postponement of payments of the principal of a loan; interest only may be paid, or it may be added on to the end of the loan.