Before you do a General Forbearance, consider the interest consequences!

When doing a General Forbearance there are things to remember.  Some are general things as we will discuss later.  Many of those things though involve interest and may have overall negative consequences.  Here are three more things to consider.

You are still responsible for the interest

No matter what types of loans you have you are responsible for the interest on these loans.  While payments are not required, interest will continue to accrue on these loans.

This will lead to interest capitalization

As mentioned here whenever you re-enter repayment after a forbearance, deferment, or grace period that interest will be capitalized.  This will lead to a higher principal balance and as a result a higher daily interest amount.

You can pay the interest while in a forbearance

You are allowed to make payments while in a forbearance or deferment period.  This will not put you back into repayment as people fear.  What it will do is either eliminate part of if not all the interest capitalization.  This will keep your daily interest along with possibly your installment amount raising (or raising as much) in the future