Another Friday, another deferment or forbearance spotlight. Today we will look at the General Forbearance, which is the most known of the forbearances.
What it is: It’s name says it all. This forbearance is a catchall for all of life’s general things that makes it not possible to pay. The list runs from covering processing time to not being able to pay one month because of unexpected car expenses.
Eligibility Requirements: There are none! As long as you have time left, you can use it for any reason.
How long is this Forbearance for: For post 7/1/93 loans (many rules were different before then) you get 3 years of forbearance. You can use up to 12 months at a time for this forbearance
Why it may not be the best idea: During this forbearance, interest still accrues so if you are able to get on an Income Driven plan or qualify for a deferment it is a better idea. Also do remember once it is gone it is gone and you can’t get it back.
Once again, for any forbearance or deferment it is best to visit your servicer’s website or contact them by phone or email for details. Some forbearances/deferments can be done verbally, some online, while some require a form. This forbearance can be done by form, online or verbally