most recent 30 from http://www.cashcommons.com 2010-03-14T02:01:53Z http://www.cashcommons.com/feeds/question/12 http://www.creativecommons.org/licenses/by-nc/2.5/rdf http://www.cashcommons.com/questions/12/what-are-the-consequences-of-having-a-loan-go-into-forbearance mbhunter 2009-10-01T16:07:57Z 2009-10-03T01:22:02Z

<p>A <a href="http://www.cashcommons.com/questions/9/pay-down-debt-or-savings" rel="nofollow">previous question</a> mentioned in passing a loan that was in forbearance.</p> <p>This is a situation I wasn't familiar with, and I found some information on <a href="http://www.tgslc.org/borrowers/forbearance/more.cfm#what" rel="nofollow">different types of student loan forbearance</a>, but it doesn't really explain what's different about making on-time payments and being in forbearance.</p> <p>My question: What things happen when a loan goes into forbearance?</p>

http://www.cashcommons.com/questions/12/what-are-the-consequences-of-having-a-loan-go-into-forbearance/20#20 Frugallawyer 2009-10-03T01:22:02Z 2009-10-03T01:22:02Z

<p>After I finished law school, my loan payments were deferred for six months. I took a huge hit in the Vegas real estate market and amassed my negative fortune. For public student loans, there is an option to go into a financial hardship forbearance. This means that I don't have to make payments during that period, but I still accrue interest. It is similar to extended the deferred payment period. </p> <p>You can take three financial hardship forbearances with no questions asked. So, essentially, for any reason. After that, you have to meet certain categories, such as low income, etc. </p> <p>If you have private student loans, the process may require an application. However, I have not personally used that since my private loan balance is a mere $10k of the total $90k.</p>