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What does forbearance mean? and what are they ?

#finance student loans college studnet​ loans and option if you cant pay ba​ck

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Karen’s Answer

Forbearance is typically used frequently in reference to the Mortgage industry. We sometime use when there is a Forbearance plan, or Forbearance period, which is a specific period of time agreed to payback an agreed amount. It is used often when a person had a temporary situation and was unable to make their mortgage payments. Such as a job loss, in order for a Forbearance to work there would have to be a solution ( New job) and a financial analysis made to ensure the Payment plan is going to be something the person can adhere to. There are a lot of factors to take into consideration, so speaking to the Mortgage company is very vital, ignoring the situation will not be helpful and could cause additional fees and cost being added for possible legal work. The forbearance could be short term or long term. Again communication with the mortgage company is very important.
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Paul’s Answer

According to studentaid.ed.gov - A deferment or forbearance allows you to temporarily stop making your federal student loan payments or to temporarily reduce the amount you pay. You’ll need to work with your loan servicer to apply for deferment or forbearance; and be sure to keep making payments on your loan until the deferment or forbearance is in place. 


Basically if you are in a situation where you are unable to afford your loan payments, a forbearance will keep you from defaulting. The main difference between a deferment and a forbearance is that with a deferment you may not be responsible for paying the interest that accrues on the loan whereas with a forbearance you pay the interest as it accrues.  
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Pat’s Answer

Forbearance is typically associated with mortgage payments, but the same could apply to student loans. According to Investopedia - Forbearance is a temporary postponement of payments. It is a form of repayment relief granted by the lender or creditor in lieu of forcing a property into foreclosure. Loan owners and loan insurers may be willing to negotiate forbearance options because the losses generated by property foreclosure typically fall on them. I hope this helps!
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