Student loan forbearance can be a helpful option if you’re facing temporary financial difficulties. Student loan borrowers in the class of 2020 had an average of over $30,000 in debt in 19 states, according to The Institute for College Access & Success. It can alleviate some of the burden by placing your loan payments on pause, but it comes with a trade-off. You’ll accrue more interest on your loan and you’ll extend the overall time it takes to repay your debt. Here’s what you need to know about student loan forbearance and when it might be an option worth considering.
Note:
If you have federal subsidized loans, consider deferment instead of forbearance. Interest accrues on all loans during a forbearance, but it doesn't accrue on subsidized loans in deferment.
Student loan forbearance allows you to temporarily stop or reduce your federal student loan payments for up to 12 months at a time if you're facing financial hardship or other qualifying circumstances. If your financial situation doesn't improve, you might be eligible to extend this period. However, the total forbearance time for federal loans is capped at three years.
During forbearance, interest on your loans continues to accrue daily, which can extend your repayment period and increase the total amount of interest you owe. That’s why forbearance should generally be considered as a last resort.
Forbearance options may also be available for private student loans, but the terms can vary significantly between lenders and are often less favorable than those for federal loans.
During forbearance, interest continues to accrue on all federal student loans. But unlike deferment, this interest generally won’t capitalize, meaning it won’t get added to your principal loan balance when the forbearance ends. Instead, you’ll be required to pay off the accumulated interest through your normally scheduled monthly payments.
Tip:
To prevent interest from accruing during a forbearance, you do have the option to make interest-only payments.
Private loan forbearance may work differently and rules vary by lender. Typically, interest will continue to accrue and it may or may not capitalize when repayment starts. Contact your lender to ask about their hardship relief policies and what repayment looks like after a forbearance.
Let’s say you have $30,000 in federal student loans with a 6.00% interest rate, and you’re on the 10-year Standard Repayment Plan. If you place your loans in forbearance for one year, a total of $1,800 in interest will accrue during this time. Once the forbearance period ends, you’ll be responsible for paying the accrued interest through your normal monthly payments, and your monthly bill will increase by $18.
There are several different types of student loan forbearances. Some are mandatory and others are up to the discretion of your loan servicer.
Student loan borrowers having trouble keeping up with their payments on Direct Loans, Federal Family Education Loans (FFEL), or Perkins Loans can apply for a general forbearance. General forbearance lasts up to 12 months and can be extended for a cumulative maximum of three years. You may qualify if you’re facing financial difficulties, have costly medical expenses, or are unemployed. Your loan servicer may accept other reasons, but this varies by servicer.
Your federal Direct Loans and FFEL student loans may qualify for mandatory forbearance if you’re serving in the AmeriCorps and received a national service award; serving in a medical or dental internship or residency program; activated in the National Guard; teaching on the path to Teacher Loan Forgiveness; eligible for partial repayment of your loans under the Department of Defense Student Loan Repayment program; or when the total you owe each month for all federal student loans is 20% or more of your total gross monthly income. If you meet the requirements for a mandatory forbearance, your loan servicer must grant it. Mandatory forbearances can last up to 12 months at a time if approved.
The Department of Education had an administrative forbearance plan in place during the pandemic to help federal student loan borrowers during trying financial times. During this forbearance, interest rates were set at 0%, and borrowers with eligible loans had their payments paused. The 0% interest rate officially ended on Sept. 1, 2023, and payments resumed in October 2023.
Private lenders may not be as flexible when it comes to pausing payments, including while you’re in school. However, some offer assistance when you’re experiencing unemployment or other financial difficulties. Contact your lender to explore your forbearance or deferment options.
Pros and cons
Pros of forbearance
- You can pause your student loan payments.
- You can free up money in your monthly budget.
- You may be able to avoid delinquency or default.
Cons of forbearance
- It’s only available for up to 12 months at a time.
- Interest continues to accrue on all student loans.
- You’ll have higher monthly payments when the forbearance ends.
You may want to consider applying for a general forbearance if:
- You can’t afford your monthly student loan payments or you’re at risk of default.
- Your financial challenges are only temporary, and you expect to recover in the next 1 to 3 years.
- You have federal student loans that are not subsidized loans.
- You can’t qualify for deferment.
You must apply for and wait for approval for student loan forbearance in most cases. If you don't make your student loan payments before receiving approval, it could hurt your credit score and put you into default, so don't wait until the last minute if you need to apply for it.
- Contact your loan servicer: Determine who your student loan servicer is and contact them to discuss forbearance and what other options you might have. Be sure to consider all options and choose the one that makes the most financial sense.
- Complete an application: To request general forbearance on a federal student loan, complete the general forbearance application on the Federal Student Aid site. There, you can also find applications for mandatory forbearances. If you have private student loans, contact your lender directly to determine if forbearance is available to you and what the application process is.
- Send documents to your loan servicer: Depending on the type of forbearance you request and your servicer’s requirements, you may need to provide documentation of your financial difficulty or other circumstances, such as proof that your income dropped or evidence of sudden expenses due to an emergency. Once you’ve completed the forbearance request and gathered documentation for it, send these to your loan servicer.
If you have federal Direct Subsidized Loans or Perkins Loans, consider student loan deferment.
Deferment, like forbearance, pauses your student loan payments. The main difference between them is that interest continues to accrue during forbearance for all loans, but it doesn’t accrue for subsidized loans while they’re in deferment. You can become eligible for deferment under a variety of circumstances, such as economic hardship, returning to school, enrolling in the military, or undergoing medical treatments.
If you don’t expect your financial situation to improve in the foreseeable future, switching to an income-driven repayment (IDR) plan might be a better option than forbearance in the long run. IDR plans such as SAVE, PAYE, IBR, and ICR set your monthly payments at a percentage of your income and forgive your remaining debt after your designated repayment period ends. This can help make your monthly payments much more manageable.
Refinancing your student loan debt at a lower interest rate can also be a strategic way to make your monthly payments more affordable. Most private student loan lenders will only offer loans to borrowers with credit scores in the mid-to-high 600s and with proof of income, so you likely won’t qualify on your own if your credit has been damaged due to late payments. You may be able to apply with a cosigner and get approved, but you should carefully consider whether you can make payments, as your cosigner would be held responsible for repaying the debt if you can't.
Before refinancing federal loans, ensure you don’t plan on taking advantage of any forgiveness programs or income-driven repayment plans offered by the government. Refinancing federal student loans into a private loan means losing access to these and other federal benefits.
Advertiser DisclosureOverview
Brazos offers student loan refinancing exclusively to Texas residents who have earned at least a bachelor's degree from an eligible school. The company does not charge application or origination fees, and its interest rates could be lower than what you find with other private lenders.
However, Brazos has eligibility requirements that some borrowers might find to be difficult to meet. To qualify, borrowers must have a minimum income of $60,000 and a credit score of 720 or higher. If you can't meet those minimums alone, you can add a cosigner who can be released after making 24 consecutive payments.
pros
- Offers five loan terms
- Competitive rate offerings
- Cosigner release after two years
- Doesn’t charge application or origination fees
- A quarter-point rate discount for using autopay
cons
- Must be a Texas resident to qualify
- Higher minimum credit and income requirements than many other lenders
- Must have earned at least a bachelor’s degree to qualify
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, up to $150,000 for bachelor’s degrees and $400,000 for graduate, medical, law, or other professional degrees
Cosigner release
After 24 on-time, consecutive payments
Eligibility
Borrower must be a Texas resident and a U.S. citizen or permanent resident who has at least one outstanding, fully disbursed education loan
$5,000 up to the full balance
Overview
SoFi®, an online lender established in 2011, offers student loan refinancing for undergraduate and graduate borrowers from Title IV schools. They also provide refinancing options for Parent PLUS loans and medical school graduates in residency or fellowship. With five repayment terms, SoFi caters to various budget needs, and you can prequalify with a soft credit pull, which won't impact your credit score. Loans are serviced by MOHELA.
SoFi stands out for its member perks, including no fees, an autopay discount, and a 0.125 percentage point interest rate reduction for existing members. Additional benefits include free financial planning, unemployment protection, and access to travel deals.
pros
- Rate discounts, financial planning, and travel deals for members
- No application, origination, or late payment fees
- Autopay rate discount available
- You can refinance parent PLUS loans in the student's name
cons
- Cosigner release not available
- Must have at least $5,000 in loans to refinance
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$5,000 - full outstanding balance
Eligibility
Must be a U.S. citizen or permanent resident. Must have made 6 on-time payments in the past 6 months, with no record of default, delinquency, bankruptcy, or foreclosure in the last five years. Employment is required, or you must have a job offer starting within 90 days. Must also have attended a Title IV-eligible school.
$10,000 up to total refinance amount
Overview
ELFI offers student loan refinancing for borrowers who have earned at least a bachelor's degree. A key benefit is that you're assigned a dedicated Student Loan Advisor as soon as you begin the application process. This advisor helps guide you through the refinancing process and assists in selecting the loan terms that best fit your financial situation. Advisors can be reached by text, email, or phone.
ELFI also allows you to refinance a parent's PLUS loan in your name, a feature that sets it apart from many other private lenders. However, ELFI does not offer cosigner release or interest rate discounts.
pros
- Work with a dedicated Student Loan Advisor
- Students can refinance parent loans in their own name
- Transparent eligibility criteria
- Payment relief options for struggling borrowers
cons
- At least a bachelor’s degree required for refinancing
- No cosigner release
- No autopay rate discount
- Fees apply for late or returned payments
Loan terms
5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing
Loan amounts
Minimum of $10,000 with no set maximum.
Eligibility
Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.
Overview
LendKey is a lending platform that partners with credit unions and community banks to help borrowers get low-interest student refinance loans. You can compare lenders all in one place without negatively impacting your credit score.
Because LendKey pairs borrowers with local banks and credit unions, the terms and eligibility requirements can differ, depending on which lender you choose. You'll have many options to compare, but it's important that you carefully review each credit union or bank's terms before signing your loan agreement.
pros
- Doesn’t charge origination or application fees
- Can refinance with an associate degree
- Offers a discount for autopay
cons
- Terms vary by the lender you choose
- Potentially need to meet membership requirements for certain credit unions or banks
Cosigner release
Varies based on lender's terms
Eligibility
Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from one of LendKey lenders’ eligible institutions.
Overview
INvestEd is a nonprofit lender that offers student loan refinancing with competitive rates. Borrowers can take advantage of an autopay discount, as well as cosigner release after only 12 on-time payments.
The lender's maximum refinance loan limit is $250,000, which is lower than some other lenders. International students aren't able to refinance their student loans. INvestEd has a minimum credit score requirement of 670, and borrowers must meet an income requirement. However, the lender doesn't offer prequalification, so potential borrowers can't find out what their rate would be without a full application.
pros
- Don’t need a degree to refinance
- Offers rate discount for autopay
- Can release cosigner after 12 on-time payments
- Various deferment options available
cons
- Can’t prequalify before applying
- Maximum loan limit is lower than some lenders
- Not able to transfer a parent loan to a student
- International students aren’t eligible
Eligibility
U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.
Overview
If you have at least $10,000 in student loans to refinance, Citizens may be a good option.The lender has a relatively high loan maximum of $300,000 for undergraduate borrowers, and graduate or professional degree holders can refinance up to $500,000 or $750,000.
Citizens offers loan repayment terms ranging from five to 20 years, and rates can be either fixed or variable. Medical residents can refinance loans with fixed monthly payments of $100 for up to four years.
pros
- Offers prequalification to check rates
- Discounts for autopay and loyalty
- Wide range of repayment terms
cons
- Higher minimum loan requirement than some lenders
- Cosigner release only available after 36 payments
- 12 payments required for borrowers without at least a bachelor’s degree to be eligible to refinance
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
Eligibility
Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.
Overview
EdvestinU is a nonprofit student loan lending and refinancing organization that's part of the Granite Edvance Corporation. It offers student refinance loans, with fixed- and variable-rate options available.
The lender offers student loan refinancing in 20 states. It has higher loan minimums and lower maximums to qualify for refinancing than some competitors. Eligible borrowers have a range of student loan repayment term options to choose from.
pros
- No degree required to qualify and can refinance while still in school
- Rate discount of 0.25 percentage points for autopay
- New Hampshire residents may qualify for a 1.5 percentage point rate reduction
- Can prequalify and see rate offers with no impact on credit score
cons
- Not available to borrowers in all states
- Higher minimum balances and lower maximum balances than some competitors
- Stricter cosigner release requirements than many other lenders
Eligibility
U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.
$10,000 up to the total amount
Overview
The Massachusetts Educational Financing Authority (MEFA) provides refinancing options for student borrowers, even if you haven't earned your degree. While MEFA doesn't offer variable-rate loans, its fixed-rate options are competitive with what other lenders offer.
You can refinance loans starting at $10,000, but you'll need to have made six on-time payments on your current loans within the last six months to qualify. If your credit history isn't strong enough, you can apply with a cosigner. However, MEFA doesn't offer cosigner release, meaning the cosigner remains responsible until the loan is fully paid off.
pros
- You don’t need a degree to refinance
- View your estimated rate through prequalification
- No application, origination, or late fees
cons
- Variable rates are not offered; only fixed
- No autopay rate discount
- Cosigner can’t be released from the loan
- Parent loans are not eligible for refinancing
Loan amounts
$10,000 up to your total debt
Eligibility
Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.
Overview
Rhode Island Student Loan Authority (RISLA) is a nonprofit lender founded in 1981 that offers refinance loans to borrowers in all 50 states. While most private student loan lenders cater exclusively to borrowers who have earned degrees, RISLA also refinances loans for those who did not complete a degree program.
One of the benefits RISLA offers is income-based repayment, which is usually only available with federal student loans. Borrowers experiencing financial hardship may also qualify for forbearance for a period of as long as 24 months. Those returning to resume graduate studies school may defer repayment on their refinancing loans for as long as 36 months.
pros
- Offers income-based repayment
- Forbearance periods of as long as 24 months available
- Graduate school deferment periods as long as 36 months
- Can refinance even without a degree
cons
- Cosigners cannot be released from loans
- Limited range of repayment terms
- Must have income of at least $40,000 to qualify
- Doesn’t offer variable-rate loans
Loan amounts
$7,500 minimum up to of $250,000, depending on degree
Eligibility
Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
Overview
Brazos offers student loan refinancing exclusively to Texas residents who have earned at least a bachelor's degree from an eligible school. The company does not charge application or origination fees, and its interest rates could be lower than what you find with other private lenders.
However, Brazos has eligibility requirements that some borrowers might find to be difficult to meet. To qualify, borrowers must have a minimum income of $60,000 and a credit score of 720 or higher. If you can't meet those minimums alone, you can add a cosigner who can be released after making 24 consecutive payments.
pros
- Offers five loan terms
- Competitive rate offerings
- Cosigner release after two years
- Doesn’t charge application or origination fees
- A quarter-point rate discount for using autopay
cons
- Must be a Texas resident to qualify
- Higher minimum credit and income requirements than many other lenders
- Must have earned at least a bachelor’s degree to qualify
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, up to $150,000 for bachelor’s degrees and $400,000 for graduate, medical, law, or other professional degrees
Cosigner release
After 24 on-time, consecutive payments
Eligibility
Borrower must be a Texas resident and a U.S. citizen or permanent resident who has at least one outstanding, fully disbursed education loan
Loan Amounts
$5,000 up to the full balance
Overview
SoFi®, an online lender established in 2011, offers student loan refinancing for undergraduate and graduate borrowers from Title IV schools. They also provide refinancing options for Parent PLUS loans and medical school graduates in residency or fellowship. With five repayment terms, SoFi caters to various budget needs, and you can prequalify with a soft credit pull, which won't impact your credit score. Loans are serviced by MOHELA.
SoFi stands out for its member perks, including no fees, an autopay discount, and a 0.125 percentage point interest rate reduction for existing members. Additional benefits include free financial planning, unemployment protection, and access to travel deals.
pros
- Rate discounts, financial planning, and travel deals for members
- No application, origination, or late payment fees
- Autopay rate discount available
- You can refinance parent PLUS loans in the student's name
cons
- Cosigner release not available
- Must have at least $5,000 in loans to refinance
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$5,000 - full outstanding balance
Eligibility
Must be a U.S. citizen or permanent resident. Must have made 6 on-time payments in the past 6 months, with no record of default, delinquency, bankruptcy, or foreclosure in the last five years. Employment is required, or you must have a job offer starting within 90 days. Must also have attended a Title IV-eligible school.
Loan Amounts
$10,000 up to total refinance amount
Overview
ELFI offers student loan refinancing for borrowers who have earned at least a bachelor's degree. A key benefit is that you're assigned a dedicated Student Loan Advisor as soon as you begin the application process. This advisor helps guide you through the refinancing process and assists in selecting the loan terms that best fit your financial situation. Advisors can be reached by text, email, or phone.
ELFI also allows you to refinance a parent's PLUS loan in your name, a feature that sets it apart from many other private lenders. However, ELFI does not offer cosigner release or interest rate discounts.
pros
- Work with a dedicated Student Loan Advisor
- Students can refinance parent loans in their own name
- Transparent eligibility criteria
- Payment relief options for struggling borrowers
cons
- At least a bachelor’s degree required for refinancing
- No cosigner release
- No autopay rate discount
- Fees apply for late or returned payments
Loan terms
5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing
Loan amounts
Minimum of $10,000 with no set maximum.
Eligibility
Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.
Overview
LendKey is a lending platform that partners with credit unions and community banks to help borrowers get low-interest student refinance loans. You can compare lenders all in one place without negatively impacting your credit score.
Because LendKey pairs borrowers with local banks and credit unions, the terms and eligibility requirements can differ, depending on which lender you choose. You'll have many options to compare, but it's important that you carefully review each credit union or bank's terms before signing your loan agreement.
pros
- Doesn’t charge origination or application fees
- Can refinance with an associate degree
- Offers a discount for autopay
cons
- Terms vary by the lender you choose
- Potentially need to meet membership requirements for certain credit unions or banks
Cosigner release
Varies based on lender's terms
Eligibility
Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from one of LendKey lenders’ eligible institutions.
Overview
INvestEd is a nonprofit lender that offers student loan refinancing with competitive rates. Borrowers can take advantage of an autopay discount, as well as cosigner release after only 12 on-time payments.
The lender's maximum refinance loan limit is $250,000, which is lower than some other lenders. International students aren't able to refinance their student loans. INvestEd has a minimum credit score requirement of 670, and borrowers must meet an income requirement. However, the lender doesn't offer prequalification, so potential borrowers can't find out what their rate would be without a full application.
pros
- Don’t need a degree to refinance
- Offers rate discount for autopay
- Can release cosigner after 12 on-time payments
- Various deferment options available
cons
- Can’t prequalify before applying
- Maximum loan limit is lower than some lenders
- Not able to transfer a parent loan to a student
- International students aren’t eligible
Eligibility
U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.
Overview
If you have at least $10,000 in student loans to refinance, Citizens may be a good option.The lender has a relatively high loan maximum of $300,000 for undergraduate borrowers, and graduate or professional degree holders can refinance up to $500,000 or $750,000.
Citizens offers loan repayment terms ranging from five to 20 years, and rates can be either fixed or variable. Medical residents can refinance loans with fixed monthly payments of $100 for up to four years.
pros
- Offers prequalification to check rates
- Discounts for autopay and loyalty
- Wide range of repayment terms
cons
- Higher minimum loan requirement than some lenders
- Cosigner release only available after 36 payments
- 12 payments required for borrowers without at least a bachelor’s degree to be eligible to refinance
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
Eligibility
Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.
Overview
EdvestinU is a nonprofit student loan lending and refinancing organization that's part of the Granite Edvance Corporation. It offers student refinance loans, with fixed- and variable-rate options available.
The lender offers student loan refinancing in 20 states. It has higher loan minimums and lower maximums to qualify for refinancing than some competitors. Eligible borrowers have a range of student loan repayment term options to choose from.
pros
- No degree required to qualify and can refinance while still in school
- Rate discount of 0.25 percentage points for autopay
- New Hampshire residents may qualify for a 1.5 percentage point rate reduction
- Can prequalify and see rate offers with no impact on credit score
cons
- Not available to borrowers in all states
- Higher minimum balances and lower maximum balances than some competitors
- Stricter cosigner release requirements than many other lenders
Eligibility
U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.
Loan Amounts
$10,000 up to the total amount
Overview
The Massachusetts Educational Financing Authority (MEFA) provides refinancing options for student borrowers, even if you haven't earned your degree. While MEFA doesn't offer variable-rate loans, its fixed-rate options are competitive with what other lenders offer.
You can refinance loans starting at $10,000, but you'll need to have made six on-time payments on your current loans within the last six months to qualify. If your credit history isn't strong enough, you can apply with a cosigner. However, MEFA doesn't offer cosigner release, meaning the cosigner remains responsible until the loan is fully paid off.
pros
- You don’t need a degree to refinance
- View your estimated rate through prequalification
- No application, origination, or late fees
cons
- Variable rates are not offered; only fixed
- No autopay rate discount
- Cosigner can’t be released from the loan
- Parent loans are not eligible for refinancing
Loan amounts
$10,000 up to your total debt
Eligibility
Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.
Overview
Rhode Island Student Loan Authority (RISLA) is a nonprofit lender founded in 1981 that offers refinance loans to borrowers in all 50 states. While most private student loan lenders cater exclusively to borrowers who have earned degrees, RISLA also refinances loans for those who did not complete a degree program.
One of the benefits RISLA offers is income-based repayment, which is usually only available with federal student loans. Borrowers experiencing financial hardship may also qualify for forbearance for a period of as long as 24 months. Those returning to resume graduate studies school may defer repayment on their refinancing loans for as long as 36 months.
pros
- Offers income-based repayment
- Forbearance periods of as long as 24 months available
- Graduate school deferment periods as long as 36 months
- Can refinance even without a degree
cons
- Cosigners cannot be released from loans
- Limited range of repayment terms
- Must have income of at least $40,000 to qualify
- Doesn’t offer variable-rate loans
Loan amounts
$7,500 minimum up to of $250,000, depending on degree
Eligibility
Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
Fox Business does not make or arrange loans.
Meet the contributor:
Janet Berry-Johnson
Janet Berry-Johnson is an authority on income taxes and small business accounting. She was a CPA for over 12 years and has been a personal finance writer for more than five years. Her work has been featured by The New York Times, Forbes, Business Insider, and MSN.
