Forbearance
Forbearance is usually a temporary postponement of payments. The borrower may alternatively request an extension of time allowed for making payments or the
acceptance of smaller payments than were previously scheduled. Unlike deferment, interest continues to accrue during any period of forbearance.
The borrower must request forbearance in writing, providing documentation that supports the borrower's claim that he or she is financially unable to make
payments.
When the written request and supporting documentation have been received, if NC State University determines that the borrower qualifies, forbearance may be
granted for up to one year at a time. The forbearance may be renewed, but the periods of forbearance collectively may not exceed a total of three
years.
A lending institution must grant forbearance if the total amount the borrower is obligated to pay monthly on all Student Financial Assistance (SFA) loans is
equal to or greater than 20% of the borrower's total monthly gross income (defined as gross income received from employment and from other sources). The
following documentation must be supplied to support the request for forbearance:
- Copies of the most recent monthly pay statement showing total monthly gross income and
- Copies of the most recent monthly statements showing the amounts owed on his or her SFA loans.
Forbearance may also be granted for one of the following reasons:
- Extended illness
- Department of Education authorized periods due to local/national emergency or national military mobilization.
- Service in AmeriCorps
Download Forbearance Request
(Note: use this form only if
you attended and received your Federal Perkins Loan from North Carolina State University)
