Stafford Loan Forbearance
If youíre having problems finding the money to pay for your Stafford Loans then you may want to request for the Stafford Loan forbearance. The forbearance allows you to temporarily stop making payments on your loan, temporarily make smaller payments, or extend the time for making payments without negatively impacting your credit history.
The Direct Loan Forbearance is a temporary postponement or reduction of payments for a period of time because you are experiencing financial difficulty. You can receive forbearance if youíre not eligible for a deferment. Unlike deferment, whether your loans are subsidized or unsubsidized, interest accrues, and youíre held responsible for repaying this interest. The Direct Loan program can grant forbearance in intervals of up to 12 months at a time for up to 3 years.
In order to become eligible for the Stafford Loan forbearance, you have to apply to the Direct Loan Program and you must continue to make payments until you've been notified your forbearance has been granted. If you stop making payments without being notified to do so, you risk the chances of not qualifying since the loan provider reviews your payment history.
Itís important to continue making payment of your credit score may be negatively impacted if any student loan payments are not paid on time. Students also are not able to borrow any additional Stafford Loans in the future, if they have a history or making late payments or they stopped paying their previous Stafford loans.
The Direct Loan Program offers many favorable repayment terms if you are unable to pay your current Stafford Loan. If you feel you are unable to continue to pay your student loan on time then you should contact a Direct Loan representative to discuss the many different options that are available.