Student Loan Forbearance Options For Graduates–Risks And Rewards Of Delaying College Loan Repayments

Student loan forbearance options has been one way that graduates have been able to delay the repayment of their debt and avoid complications which may arise if their student loan repayment obligations are simply too costly for them to afford at the present time. While there are various types of student loans which can be accessed by students during their college career and after graduation, there are many who are finding that they have been unable to find an employment opportunity that will allow them to repay their debts in a timely manner when multiple loans or a high principal balance is present.

Yet, students who have used forbearance programs on their student loan debt have been able to forgo repaying these obligations for a set period time, while they search for employment opportunity or simply get in a more stable financial position that will allow them to meet minimal costs associated with their debt. As an example, federal student loans allow for students to enter into a period of forbearance for up to three years, and this is the same for deferment options which may be available to certain students who could be facing financial trouble.

Essentially, these forbearance programs are set in place to help students avoid missing payments or defaulting on their student loans, as there are many graduates who are simply unable to pay their student loan debts and, as a result, simply stop trying to rid themselves of this debt obligation. However, there are some risks that may come with forbearance as some students who are granted a reprieve from having to make these payments will also notice that interest continues to build on their debt.

There are many who consolidate their student loans into one lump sum, in the hopes of finding more affordability in their monthly payments, but factors like underemployment and unemployment have recently wreaked havoc in the lives of graduates and have forced them to seek out either more affordable repayment opportunities or simply enter into a period of forbearance while they are facing financial trouble. Students do have a grace period during which they do not have to pay on their student loans directly after graduation, which may offer them time to get their finances in order without the need of a forbearance plan, but students who may run the risk of missing repayment requirements are often prompted to explore these assistance options.

While college loan forbearance opportunities are not the only method students have used to avoid missing student loan repayment obligations, as income-based repayment or simply a consolidation loan in and of itself will be enough to lower the monthly requirement a student must pay to an affordable level, these forbearance options may be helpful to underemployed or unemployed graduates who want to repay their college loans, but are simply not in a position to meet these payment obligations in their current financial state.