Forbearance
Like a deferment, forbearance allows you to postpone payment on your federal loans. If you choose to place your loans in forbearance:
- Interest will accrue and may be added to your loan; therefore, forbearing payments for an extended period of time may substantially increase your loan balance.
- Iowa Student Loan strongly encourages you to make payments that at least cover your accrued interest to avoid increases in your loan balance.
Types of forbearance available for federal student loans:
Federal Loan Forbearance
All borrowers with federal student loan(s) may apply for forbearance in the following situations:
- Temporary Hardship — Forbearance may be granted when a borrower is unable to make the minimum monthly payment on his or her student loan(s) due to financial difficulty. This forbearance may be granted at Iowa Student Loan's discretion.
- Medical or Dental Internship/Residency — Forbearance may be granted when a borrower has used his or her maximum 24 months of internship/residency deferment or did not meet the qualifications for that deferment. The forbearance may be granted in yearly increments or through the end of the internship/residency period, if the remaining internship/residency period is less than 12 months.
- Grace — Forbearance may be granted to align a borrower's federal consolidation loan or Federal PLUS Loan that was disbursed before July 1, 2008, with either:
- The end of the in-school or post-enrollment period on his or her Federal PLUS Loan(s) first disbursed on or after July 1, 2008.
- Federal Stafford Loan(s) that are eligible for a grace period.
- Economic Hardship — Forbearance is granted to a borrower whose Title IV student loan gross monthly payments are equal to or exceed 20% of his or her individual gross income. The borrower must return:
- The signed forbearance form.
- Documentation verifying the most recent total monthly gross income from employment and all other sources.
- Documentation verifying monthly payments on all Title IV student loans not serviced by Iowa Student Loan.
- In-School — Forbearance may be granted to a borrower whose Federal Parent PLUS loan is first disbursed before July 1, 2008, while the dependent student, for whom the loan was taken out, is attending a Title IV school at least half time. The borrower must return the signed forbearance form and provide the:
- Student's name
- Name of the school the student is attending.
- Dates of attendance.
Please contact Iowa Student Loan for more information on any of the forbearances mentioned above.
Download the Federal Loan Forbearance Form (PDF)
National and Community Service
Forbearance may be granted to a borrower who is serving in a national service position, such as AmeriCorps.
Apply online at AmeriCorps
If you're unable to complete the forbearance request online, please contact the AmeriCorps Program Director.
Department of Defense Forbearance
Borrowers who are performing military service and are enrolled in the Student Loan Repayment Program administered by the U.S. Department of Defense may qualify for the Department of Defense Forbearance to postpone repayment. Please contact Iowa Student Loan for more information.
Emergency and Disaster Forbearance
Please contact Iowa Student Loan for more information about forbearance if you are:
- A borrower experiencing a local or national emergency.
- A borrower residing in a geographical area that has been designated a disaster area by the president of the United States or Mexico, the prime minister of Canada or by a governor of a state.
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