During the grace period on Unsubsidized Stafford Loans, you are responsible for making interest-only payments or you may have accrued interest added to the principal of your loan. Repayment of the loan principal is postponed until the end of the grace period. You must file deferments on time. If a loan is in default, you will not eligible for any deferments for that loan. T F Forbearance Forbearance is a temporary cessation of payments, making smaller monthly payments, or an extension of time for making payments.
Interest continues to accrue during periods of forbearance.
Accrued interest may be paid or will be capitalized at the end of the forbearance period. Forbearance is not automatic, you must request it from your lender. Bankruptcy - in very rare circumstances Upon your death, your family would not be required to repay your loan. Contact your lender or guarantee agency if you're having any problems. If you don't repay your loan on time, or according to the terms in your promissory note, you may go into default.