Can you make student loan payments during a forbearance or collection stoppage?

Student loan forbearance provides temporary relief to borrowers facing financial hardship, allowing them to pause or reduce their payments. However, interest typically continues to accrue during this time, and borrowers may face long-term financial consequences if they do not manage their loans carefully.

Can you still make payments during forbearance?

Yes, borrowers can make voluntary payments on their student loans during forbearance or cessation of collections, although they are not required to do so. Making payments during this time can help reduce accrued interest and prevent it from being added to the loan principal when forbearance ends.

This approach is particularly advantageous for borrowers with Federal Family Education Loan (FFEL) Program loans, in which unpaid interest can capitalize and increase the principal balance after forbearance. Payments made during forbearance first cover accrued interest and then reduce the principal, ultimately reducing the total repayment amount over time.

However, borrowers aiming Public Service Loan Forgiveness (PSLF) or forgiveness under Income-Driven Reimbursement (IDR) plans must be careful. Payments made during forbearance do not count toward eligible payments for these forgiveness programs.

Why income-based repayment might be a better option

Before opting for abstention, experts recommend exploring Income-Driven Reimbursement (IDR) plans. These plans adjust monthly payments based on income and family size, with payments potentially as low as $0 per month. It is important to note that borrowers on IDR plans continue to progress toward PSLF or loan forgiveness, even if their payment is $0.

For most federal loans, interest is not capitalized at the end of forbearance, but FFEL loans not managed by the Ministry of National Education are an exception. Capitalizing interest can significantly increase the total repayment amount.

How to request forbearance

To request forbearance, borrowers must submit an application along with the necessary documents for their loan officer. There are two types of abstention:

General abstention (optional): Approved at the discretion of the loan servicer.
Obligatory abstention: Granted if borrowers meet specific eligibility requirements.

Smart Financial Planning During Forbearance

For borrowers who can afford it, making voluntary payments during forbearance can reduce the overall cost of the loan. However, it is essential to understand how these payments interact with forgiveness programs and interest accrual.

For personalized advice, visit Student Aid.gov or consult your loan officer for tailor-made support.

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