A Mandatory Forbearance resembles a deferment, in that your lender must
grant it to you if you request it and if you qualify. It resembles a forbearance
in that you are responsible for interest on your loans during the mandatory forbearance
period, even if interest was paid by the government during your in-school period.
As in any forbearance period, you may continue to make monthly payments to cover
interest, or you may allow the interest that has accrued during the forbearance
to be capitalized, or added to the principal balance of your loan(s). This
means that you will pay interest on a higher balance when you resume payments, possibly
causing your monthly payment amount to go up.
A mandatory forbearance may be granted for the following reasons:
Internship or Residency
If you are a medical or dental intern or resident and you either do not qualify
for an internship/residency deferment (i.e., the earliest of your outstanding loans
was borrowed after 6/30/1993), or you have exhausted your deferment eligibility,
you may qualify for a mandatory forbearance. To qualify, you must be engaged
in a program that:
Must be successfully completed before
you may begin professional practice or service, or
Leads to a degree or certificate
awarded by an institution of higher education, a hospital, or health care facility
offering postgraduate training.
The mandatory forbearance for internship/residency is available as long
as you continue to meet eligibility criteria.
Debt Exceeds Monthly Income
The lender must grant a forbearance in yearly increments for up to three years,
if you are obligated to make payments on Title IV loans (i.e., FFELP, Federal Direct
Loans, and Federal Perkins Loans) and the total of monthly payments is 20% or more
of your total monthly income.
National Service, Loan Forgiveness, or Department
of Defense Repayment
The lender must grant a forbearance in yearly increments for any period during
Serve in a national service position
for which you receive a national service educational award under the National and
Community Service Trust Act of 1993 (AmeriCorps); or
Maintain eligibility for loan forgiveness
under the Stafford Loan Forgiveness Demonstration Program (if the program is funded)
for performing the required type of service; or
Performs service that would qualify
the borrower for partial loan repayment under the Student Loan Repayment Programs
administered by the U.S. Department of Defense.
The mandatory forbearances described require you to complete a request
form for your lender or servicer. Click
here to access a list of
servicers and contacts.
Mandatory Administrative Forbearance
There are also types of mandatory forbearance that your lender or servicer can apply
to your account without a written request. This type of postponement of payments
is called a Mandatory Administrative Forbearance. Although no written request
is needed, your lender or servicer, when applying such a postponement, must send
you a notice stating that you:
May decline the forbearance and
continue to be obligated to make scheduled payments; or
Consent to make payments in accordance
with the notification if the forbearance is not declined
Mandatory Administrative Forbearances may be granted for
the following conditions:
Graduated or Variable Interest Repayment Extension
Your lender or servicer may extend your repayment period for up to three
(3) years, if your account will not be paid in full within the standard 10-year
period because of the effects of a graduated repayment schedule or annual changes
in variable interest rates (See Graduated and Income-Sensitive
Income-Sensitive Repayment Extension
Similarly, your lender or servicer may extend your repayment period for up
to five (5) years if the reduced payments of an income-sensitive repayment schedule
cause your account to not be paid in full within the standard 10-year period (See
Graduated and Income-Sensitive Repayment Schedules)
For the following three types of forbearances, the lender is not required
to notify the borrower at the time forbearance is granted. The lender must grant
a forbearance to a borrower or endorser during any period, and during the 30 days
following the period, when the lender is notified by the U.S. Department of Education
of any of the following conditions:
Local or National
During periods of emergencies, the lender may not require
a borrower to submit a request for the forbearance or supporting documentation.
Defined as a situation in which the U.S. Department of Defense
orders members of the National Guard or the Reserves to active duty. A military
mobilization also includes the assignment of other members of the Armed Forces to
duty stations at locations other than the locations at which they are normally assigned.
The lender must require a borrower or endorser who requests forbearance because
of a military mobilization to provide documentation showing that the borrower is
subject to a military mobilization as described above.
A lender must grant a forbearance for a borrower if the geographic
area in which the borrower resides has been designated as a disaster area by the
president of the United States or Mexico, the prime minister of Canada, or by a
governor of a state Disasters.
A lender must grant a forbearance for a borrower if the geographic area in which
the borrower resides has been designated as a disaster area by the president of
the United States or Mexico, the prime minister of Canada, or by a governor of a
state. The lender may not require a borrower to submit a request for the forbearance
or supporting documentation.
If you don’t think that a forbearance is the best option for you return
to the Questionnaire to make another selection.