Forbearance may be given for circumstances that are not covered by deferment that adversely affect the borrower's ability to meet loan payment obligations. A lender or the government may take this action to force repayment of a loan that is in default. It is not based on income. Guarantors insure lenders against losses due to a borrower's default, death, disability, or bankruptcy. The owner of the loan.
Payments increase as income rises.
Sallie Mae's website has an example. The fee is normally deducted from the amount of the loan proceeds. Interest refers to the amount charged for the use of the money over time, and is usually stated as an annual percentage of the principal amount. It lists the conditions under which the loan is made and the terms under which the borrower agrees to pay back the loan. Visit USAF's homepage for a brief summary of the benefits of various repayment plans.