Six Things You Should Know About Student Loan Forbearances

If you run into trouble paying your student loan, chances are you’ve been told to “just go on forbearance.”  Here are five reasons that is a terrible idea in many cases: The client I just finished speaking with has had a few hardships in her life (health, divorces, low pay, disabled daughter etc.).  When she called her servicer for help, she was told she could go on a forbearance.  She’s been on many forbearances over the years.  Her servicer never adequately explained her options.  She could have taken advantage of an income based plan with ten year debt forgiveness because she was a teacher.  She’s been a teacher for practically forever.  She would owe zero right now if she’d known what to do.  But instead her loan has ballooned from 23k to, wait for it, $126,000.  It’s gone up 10x!  And she has only three years until she retires, divorced with a disabled daughter. …

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