Need to postpone repayment? You may qualify for forbearance
Returning to school, serving 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 monthly payment amount after the forbearance and 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
Loan terms:
- $15,000 loan balance
- 9% fixed interest rate
- 10-year repayment term
|
Paying Interest |
Not Paying Interest |
Monthly interest payment during forbearance |
$113
|
$0
|
Loan balance at repayment
|
$15,000
|
$16,350
|
Monthly payment after forbearance
|
$190
|
$207
|
Total repayment amount
|
$24,152
|
$24,854 |
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.
Extended grace: You may be eligible for up to an additional 6 months of grace if you are having short term difficulty making your payments when your initial grace period ends.
In-school forbearance: If you are in school, 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 qualify for this type of forbearance even if you are enrolled less than half time. You can request an in-school forbearance by completing and submitting the form below:
In-School Forbearance Request Form (PDF*)
Internship, Residency or Fellowship forbearance: If you are completing an internship, residency, or fellowship program you may be able to postpone payments on your student loan, up to a maximum of 36 months. You can request an internship, residency or fellowship forbearance by completing and submitting the form below:
Internship/Residency/Fellowship Forbearance Request Form (PDF*)
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.
Second 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 a period of active military service or receiving loan repayment from the Department of Defense repayment program, you may be able to postpone payments on your student loan. Military Forbearances may be processed for the active military service period, up to a maximum of 3 years or up to 90 days for each Department of Defense loan repayment request.
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.