The borrower is not required to make payments on any accrued interest, therefore unpaid interest will be capitalized at the end of each forbearance period. Optional 1 forbearance - The borrower pays the 31 day accrued interest amount of the loan for the current month and is granted a full forbearance to clear delinquency. Interest payments are billed monthly. Optional 2 forbearance - The borrower does not make payments and all accrued interest is capitalized at the end of the forbearance period. For loans disbursed in the 1997-98 program year and beyond, forbearance eligibility is as follows Twelve months of forbearance granted in six month intervals.
Interest is capitalized at the end of each forbearance period.
The following forbearance options are available to Access Loan Program borrowers only. This forbearance type can be granted in six month increments for up to a total of twelve months. This option is available to borrowers who are unemployed, underemployed, or experiencing a temporary hardship due to illness, short term disability, parental leave, immediate family member illness or financial emergency. Borrowers are not required to make any payments during the term of this forbearance type. In addition, borrowers can be granted this forbearance type for twelve months during the life of the loan.