Interest continues to accrue at the borrower's expense.
A borrower may pay the interest as it accrues, or have it added to the outstanding principal balance. Any payment made during the forbearance period is credited first to late fees, then to the outstanding accrued interest, with the remainder credited to reduce the principal balance. A forbearance on a federal loan may be requested for a minimum of one month and a maximum of six months at one time. Additional time must be requested separately. Get a free copy here.