Can you explain how eligibility for a forbearance works, please?
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There are two main types of forbearance: general and mandatory.
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How do I know if I can request a forbearance?
Are you experiencing financial difficulties?
No, all is fine with my finances.
Do you have medical expenses?
No, I'm healthy.
Was there a change in employment?
No, my work is the same as before.
Do you fulfill any other reasons acceptable to your loan servicer?
Yes, I do.
Then you should be able to get a general forbearance. A general forbearance is sometimes called a discretionary forbearance.
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What if I don't pay the interest on my loan and let it be capitalized?
In that case the total amount you repay over the life of your loan may be higher. Unpaid interest is capitalized only on Direct Loans and Federal Family Education Loan (FFEL) Program loans. Unpaid interest is never capitalized on Federal Perkins Loans.
