Need to postpone repayment? You may qualify for forbearance
Returning to school, enlisting in the military or enrolling in a graduate or professional course of study may allow you to temporarily suspend your student loan payments. This is known as forbearance. Or, you may have encountered a job loss or other type of financial hardship that makes it difficult for you to remain current on your loan payments.
Interest will continue to accrue during periods of forbearance
Interest on your student loan continues to accumulate during the forbearance period. When your forbearance ends, all accumulated and unpaid interest is added to the outstanding principal balance. This may increase the total amount paid over the life of the loan.
You can make payments during periods of forbearance, even though payments are not required
Any payments made during the forbearance period will help reduce the amount you pay over the life of the loan.
Example of a 12-month forbearance
- $15,000 loan balance
- 9% fixed interest rate
- 10-year repayment term
||Not Paying Interest
|Monthly interest payment during forbearance
|Loan balance at repayment
|Monthly payment after forbearance
|Total repayment amount
The bottom line:
Paying the interest during the forbearance period can reduce your monthly payment after forbearance by $17 a month, and save you about $702 over the life of the loan.
Types of forbearance
Whatever your specific situation, we’re here to support you through various forbearance options.
In-school forbearance. If you are in school or completing an internship, residency, or fellowship program, you may be able to postpone payments on your student loan for the length of time you remain in school, up to a maximum of 48 months. You may also request forbearance for the summer months if you plan to re-enroll for the fall term.
- You may qualify for this type of forbearance even if you are enrolled less than half time. You can request by submitting one of the forms below:
Public service forbearance. If you are volunteering for a qualifying public service organization, you may be able to postpone payments on your student loan for the length of time you are volunteering, up to a maximum of 3 years.
Extended grace. If you had an in-school forbearance when attending school half time or full time and the in-school forbearance ends, you may be eligible for an additional 6 months of grace time to help you prepare for repayment on your loan.
Military forbearance. If you are on active duty, on reserve, or retired as a member of our Armed Forces, or if you are in the National Guard full time, you may qualify for a military deferment of up to 36 months.
FEMA disasters. When the Federal Emergency Management Agency (FEMA) declares a disaster, Wells Fargo assists our customers by deferring their payments for some period of time.
Please call us at 1-800-658-3567 to discuss these options as it relates to your personal situation.
When you are having difficulty finding employment, have experienced a job loss, or have an unplanned medical expense, we understand that repaying student loans may be difficult.
We may have options that will provide temporary or permanent relief, if you meet eligibility criteria, such as:
- Short-term payment relief for up to two months as long as you’ve consistently made your loan payments on time
- Payment relief for up to six months due to financial hardship
- Payment options if you are already past due on your account
- Loan Modification Program which may temporarily or permanently lower payment amounts
Please call us at 1-800-658-3567. We’ll discuss these options with you.