Student Loan Forbearance Plans On Federal Loans–Graduates Delay Repayment Of College Debt

Student loan debt is often something that has been troubling for graduates who may have exited college and are not in a financial position to meet the repayment requirements of their college loans. Understandably, factors like unemployment or underemployment which have been present in the lives of many recent graduates have caused financial strains, but there may be options for graduates to delay the repayment of their college loan debt.

As an example, federal student loans may offer forbearance periods on student loan debt repayment obligations for those who may be unemployed or suffering a particular financial hardship. While some graduates have been able to take advantage of consolidation loans or income-based repayment plans, forbearance offers a graduate the opportunity to completely forgo making payments on their debt for a set period of time.

Obviously, for graduates who may be unemployed, this is greatly beneficial as there are no financial obligations from college loans for months at a time and when an employment opportunity comes available, a graduate maybe begin repaying their student debt. While there may be forbearance options on private student loans as well, this maybe dependent upon the lender as to what opportunities graduates may have to delay their debt repayment, but there may be problems associated with debt forbearance for some.

During periods of forbearance, interest may begin to accrue and compile, which could be problematic for a student, especially if this interest is eventually tacked on to the principal. Most student loans come with low, affordable interest rates and can be easily repaid by most, but there are problems related with a high amount of student loan debt which many face and, when this principle amount goes unmet, interest rates can be problematic down the road.

While it’s understandable that some students must turn to forbearance options before they began missing required student loan repayment obligations, and possibly doing damage to their credit score, advisers often have counseled students and graduates to look at their repayment options and, if at all possible, begin combating their student loan debt obligation as quickly as they can.