Why Is My Student Loan in Forbearance? 6 Causes & Next Steps

Your student loan is in forbearance because your loan servicer has temporarily paused your payments — either because you requested a break due to financial hardship, or because a federal program or administrative action automatically placed your account on hold.

Forbearance means you're not required to make payments right now, but in most cases, interest continues to accrue and will be added to your balance. Understanding exactly why your loan entered forbearance — and what happens next — helps you avoid surprises when payments resume.

What Does Student Loan Forbearance Actually Mean?

Forbearance is a temporary pause on your student loan payments, but it's not forgiveness — your loan balance typically continues to grow.

During forbearance, your servicer agrees not to collect payments for a set period. You won't face penalties or negative credit reporting for missed payments during this time. However, interest usually keeps accumulating on your principal balance.

There are two main types of forbearance for federal student loans:

Private student loans also offer forbearance, but terms vary widely by lender. Most private forbearance periods are shorter and always accrue interest.

6 Reasons Your Loan Might Be in Forbearance Right Now

Your loan could be in forbearance due to your own request, a servicer action, or a federal program — and sometimes you weren't even notified clearly.

Did You Request Forbearance and Forget?

If you contacted your servicer during a financially tight period — even briefly — you may have been placed in forbearance. Some borrowers request a pause during unemployment or medical emergencies, then forget the arrangement is still active months later.

Is Your Servicer Processing a Different Application?

When you apply for an income-driven repayment plan, Public Service Loan Forgiveness certification, or loan consolidation, your servicer often places your account in administrative forbearance while processing. This prevents missed payments from damaging your credit during the transition.

Did Your Loan Get Transferred to a New Servicer?

Federal loan servicers have changed multiple times since 2020. When your loan transfers between servicers, the receiving company may place your account in forbearance temporarily while setting up your payment schedule. You should receive notification, but these letters often arrive late or go to spam folders.

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Are You in a Federal Administrative Forbearance Period?

The federal government has used administrative forbearance during national emergencies and policy transitions. If broad federal action affects borrower accounts, your loan may be paused without any action on your part.

"Administrative forbearances are used when there are issues that affect groups of borrowers, such as natural disasters or in cases where you need to be placed in a forbearance while your servicer processes applications." — Federal Student Aid

Did You Fall Behind on Payments?

Some borrowers discover their loans are in forbearance after becoming delinquent. In certain cases, servicers proactively apply forbearance to prevent accounts from going into default. While this protects your credit score temporarily, it's not a permanent solution.

Are You in a Mandatory Forbearance Category?

Certain situations require servicers to grant forbearance automatically. These include:

• Serving in a medical or dental internship/residency program
• Performing qualifying service in AmeriCorps
• Serving in the National Guard during activation
• Qualifying for teacher loan forgiveness while teaching
• Having total monthly student loan payments exceeding 20% of your gross monthly income

How Forbearance Affects Your Loan Balance in 2026

The biggest catch with forbearance is interest capitalization — unpaid interest gets added to your principal, and you end up paying interest on interest.

Here's a concrete example. Say you have $35,000 in federal student loans at 6.5% interest:

That extra $2,275 in capitalized interest increases your total repayment cost significantly over a 10 or 20-year repayment period. For every year in forbearance, you're effectively taking out a larger loan.

Some borrowers can make interest-only payments during forbearance to prevent capitalization. If your budget allows even small payments, this approach minimizes long-term damage.

How to Check Your Forbearance Status

Log into your servicer's website or studentaid.gov to see your exact loan status, forbearance end date, and accrued interest.

Follow these steps to understand your current situation:

1. Go to studentaid.gov and sign in with your FSA ID
2. Select "My Aid" to view your loan details
3. Check the loan status column for each loan — it will show "In Forbearance" if applicable
4. Note your servicer's name and contact them directly for end dates and options

Your servicer's portal provides more detailed information, including how much interest has accrued and when your forbearance period ends. Set a calendar reminder for 30 days before that date.

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What to Do If You Didn't Request Forbearance

If your loan is in forbearance and you didn't ask for it, contact your servicer immediately to understand why — and whether you'd be better off in a different repayment status.

Administrative forbearance happens for legitimate reasons, but it's not always in your best interest. If you can afford payments, staying in active repayment:

• Prevents interest capitalization
• Keeps you on track for forgiveness programs (PSLF, IDR forgiveness)
• Maintains your repayment momentum

Call your servicer and ask these specific questions:

• Why was my account placed in forbearance?
• When does this forbearance period end?
• How much interest has accrued since forbearance began?
• Can I exit forbearance early and resume payments?
• Would an income-driven repayment plan be a better option for my situation?

"Forbearance should generally be used only as a short-term solution because your balance can grow significantly." — Consumer Financial Protection Bureau

Forbearance vs. Deferment: Which Is Better?

Deferment is usually better than forbearance because subsidized loan interest doesn't accrue during deferment — but you must meet specific eligibility requirements.

If you qualify for deferment, request it instead of forbearance — especially if you have subsidized loans. Common deferment categories include returning to school at least half-time, documented unemployment, and active military service.

When Forbearance Makes Sense

Forbearance is a legitimate tool when you face genuine short-term hardship and have no other options — but it shouldn't become a habit.

Consider forbearance appropriate when:

• You've lost your job and need 2-3 months to find new employment
• You're facing unexpected medical expenses
• You're between income-driven repayment plan certifications
• Your servicer is processing a consolidation or plan change

Avoid relying on forbearance if:

• You've used it multiple times already
• You could afford payments on an income-driven plan
• You're trying to qualify for PSLF (forbearance months don't count)
• Your balance has already grown significantly from capitalized interest

In Short

Your student loan is in forbearance because you requested it, your servicer placed you there during an administrative process, or a federal program paused your payments automatically. While forbearance provides temporary relief, interest typically continues accruing — increasing your total balance. Check your status at studentaid.gov, contact your servicer to understand your options, and consider whether income-driven repayment or deferment might serve you better long-term. Forbearance should be a short-term solution, not a default strategy.

What You Also May Want To Know

What Happens When My Student Loan Forbearance Ends?

When forbearance ends, your regular payment schedule resumes automatically. Any interest that accrued during forbearance typically capitalizes — meaning it's added to your principal balance. Your servicer should notify you 30-60 days before this happens. If you can't afford the payments, contact your servicer before the end date to discuss income-driven repayment plans or request an extension.

Does Forbearance Hurt My Credit Score?

Forbearance itself doesn't directly hurt your credit score. Your servicer reports your account as current during the forbearance period. However, if you miss payments before entering forbearance or after it ends, those missed payments will damage your credit. The indirect effect is that a growing balance may affect your debt-to-income ratio when applying for other credit.

Can I Make Payments While in Forbearance?

Yes, you can make voluntary payments during forbearance. Any payment you make goes toward your accrued interest first, then principal. Making even small interest-only payments prevents capitalization and reduces your long-term costs. There's no penalty for paying during forbearance, and it can keep your balance from ballooning.

How Long Can I Stay in Forbearance?

For federal student loans, general forbearance is typically granted for up to 12 months at a time, with a cumulative limit of 3 years. Mandatory forbearance periods vary based on your qualifying situation. Private loan forbearance terms depend entirely on your lender — most offer shorter periods with stricter limits. Extended forbearance significantly increases your total repayment cost.

Will Forbearance Count Toward Loan Forgiveness?

Forbearance months generally do not count toward Public Service Loan Forgiveness (PSLF) or income-driven repayment forgiveness. You must be in active repayment and making qualifying payments for those months to count. If you're pursuing forgiveness, exiting forbearance and enrolling in an income-driven plan keeps you on track. Some limited PSLF waivers have counted certain forbearance periods, but these are exceptions rather than the rule.

Reviewed and Updated on May 28, 2026 by Adelinda Manna