Forbearances

A customer who is willing but unable to make payments, and does not meet the qualifications for a deferment, may request forbearance. Forbearance will allow a customer to temporarily postpone their payment for a specified period of time, not to ­exceed 12 months per request. While the forbearance will eliminate any delinquency that currently exists on the account, it will not reverse any derogatory credit information previously reported.

There are no fees assessed for obtaining a forbearance; however, interest will continue to accrue on your loan(s) during the forbearance period. Interest payments may be made at any time during the forbearance period. Any unpaid interest at the end of the forbearance period will be capitalized (added to the principal balance). The capitalization of interest will increase the amount that must be repaid and may result in an increased monthly payment amount. Our online calculator can help you estimate the amount of interest that will accrue during your forbearance period.

The following provide brief descriptions of the available forbearances:

• Reduced Payment—This forbearance option allows you to choose your payment amount for a period of 12 months. Please note: The requested payment amount must be sufficient to cover the estimated monthly interest that will accrue on your loan(s).  If you are currently delinquent on your loan(s), we will process a hardship forbearance that will bring your account(s) current.
• Internship/Residency—You must provide a statement from an authorized program official, and possibly a state licensing agency, of the internship / residency program certifying acceptance into the program; the beginning and end dates of the program; and that the internship or residency program is a supervised training program that requires the completion of at least a bachelor’s degree before acceptance. This forbearance is available if your two year Internship Deferment eligibility has expired or you are not eligible for an Internship Deferment because of the terms of your Promissory Note.
• Student Loan Debt Burden—Your monthly Title IV student loan payments must be equal to or greater than 20% of your total monthly gross income. You must provide evidence of your total monthly gross income from all sources as well as documentation of the monthly payment amount due on any Title IV student loans not serviced by Nelnet. The maximum length is 36 months.
• Department of Defense (DOD) Loan Repayment Program—You must provide a statement from an authorized official of the Department of Defense certifying the beginning and ending dates that you are expected to perform the type of service that qualifies you for a partial repayment of your loan under this program.
• Corporation for National and Community Service (CNCS) Loan Repayment Program—You must provide a statement from an authorized official of the CNCS certifying the beginning and end dates that you are expected to perform the type of national service that qualifies you for a partial repayment of your loan under the National and Community Service Trust Act of 1993.
• Hardship—This forbearance is available to borrowers who are willing but temporarily unable to make scheduled payments, and who do not qualify for a deferment. It is granted in increments of up to one year at a time.

Click here to apply for forbearance online. If you do not wish to apply online or would like to speak to us regarding your specific situation, you may contact us to speak to a knowledgeable advisor.