Student Loan Forbearance

Keeping up with loan payments can be a daunting task for some students, especially in the current economic scenario. In loan forbearance, students can temporarily stop making payments or reduce the monthly payment for up to twelve months. With this interest continues to accrue on subsidized and unsubsidized loans. There are two types of forbearances: discretionary and mandatory. In discretionary forbearance is the lender decides whether you qualify for or not. You can mention financial hardship or illness as the basis of requesting forbearance. Under the second type, the lender has to grant you forbearance if you fulfill the specified criteria.

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Q:Can you give some information about Student Loan Forbearance Credit Score?

A:Student loan forbearance will not affect your credit score. Forbearance can be described as a temporary relief for students who are experiencing financial hardships and are unable to repay their loans. With a forbearance option, you can delay or post pone your payments till you get financially stable again. Many lenders offer forbearance options to their clients.

Q:What is Direct Student Loan Forbearance option?

A:Forbearance option means to delay loan payments. This option is available to students who cannot make loan payments on time due to financial hardships or unemployment. Forbearance helps reduce the financial burden on a student. But normally they are required to make interest payments on time. Forbearance options are available for all kinds of federal student loans.

Q:Does Student Loan Forbearance Affect Credit score?

A:No, Forbearance does not affect credit score. Many students think that it will affect their credit score but this is not true. Forbearance means to delay loan payments. This option is provided by a number of loan lenders to students who have difficulty in managing loan payments due to financial stress. This may include unemployment or unexpected financial difficulty.

Q:What are the financial aid packages offered by University of California Financial Aid?

A:University of California Financial Aid offers assistance to deserving students in the form of scholarships grants, student loans and work study programs. Scholarships and grants are gift monies that do not need to be paid back. To apply for federal programs of assistance students need to fill out Free Application for Federal Students Aid (FAFSA) and submit it with relevant paperwork.

Q:I was reading about student loan deferments and forbearance and want to know what types of forbearance are there?

A:To answer your question, generally, there are two types of forbearances: discretionary and mandatory. In discretionary forbearance, the lender decides whether you qualify for or not. You can mention financial hardship or illness as the basis of requesting forbearance. With regard to the second type, the lender has to grant you forbearance if you fulfill the specified criteria.

Q:I want to apply for Student Loan Forbearance. Does this have any benefits?

A:Forbearance can be described as reducing monthly loan repayments, or cancelling these payments for a fixed time period. This option is given to students who are going through a financial crisis and are unable to make the loan repayments on time. Forbearance has many benefits such as the following: decreased payment and no risk of defaulting on loans.

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