Deferment and Forbearance FAQ
What is a forbearance?
What is a deferment?
What are the different types of forbearance and deferment available to me?
Is there a limit on the amount of times I can place my medical school loans in deferment or
When should I apply for a forbearance or deferment?
How will I know if my request was granted?
Am I responsible for interest during a deferment or forbearance?
|Q:||What is a forbearance?|
|A:||A medical student loan forbearance is an agreement between a borrower and the lender/servicer to temporarily postpone payments, extend the timeframe for making monthly payments, or reduce the amount of monthly payments on a short-term basis.|
|Q:||What is a deferment?|
|A:||A medical student loan deferment is a period of time during which payments are postponed. Deferments usually require documentation. In-school deferments or unemployment deferments are just a couple of the different types of deferment for which borrowers can apply.|
|Q:||What are the different types of forbearance and deferment available to me?|
|Q:||Is there a limit on the amount of times I can place my medical school loans in deferment or forbearance?|
|A:||For federal student loans, you have 36 months worth of deferment request, in 6- or 12-month increments. There is no limit on the number of forbearances you can request. Private student loans have different rules. Contact your lender for details.|
|Q:||When should I apply for a forbearance or deferment?|
|A:||To allow for processing time, it is best to contact your lender(s) at least 30 days before you want the deferment or forbearance to start.|
|Q:||How will I know if my request was granted?|
|A:||Your lender will contact you in writing when your deferment or forbearance has been granted. You should continue to make payments on your loans until your receive this letter because simply submitting a request does not place your loans in deferment or forbearance status. Only a written letter from your lender is sufficient notice that your loans have been put into deferment or forbearance. When submitting your request be sure to clarify which loans you would like to put into deferment or forbearance or if you'd like to postpone payments on all your loans. If you have multiple lenders, then you must make a request to each lender.|
|Q:||Am I responsible for interest during a deferment or forbearance?|
|A:||It depends on the type of loan. If you put subsidized federal loans into deferment or forbearance, the government will pay any interest that accrues during the deferment or forbearance period. If you put unsubsidized loans into deferment or forbearance, you have the option to pay the interest while in deferment or forbearance or you can opt to have the interest added to the principal. Interest capitalization might work differently for private loans. Contact your lender for details on interest capitalization during deferment or forbearance periods.|
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