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The Pros and Cons of Student Loan Forbearance

Posted on 2023-04-13 17:06:13 by iNF
Finance Student loans Forbearance Finances Debt
The Pros and Cons of Student Loan Forbearance

Student loan forbearance is a temporary pause on paying back your loans. While it can provide some relief in certain situations, it also has drawbacks to consider. In this article, we'll explore both the benefits and drawbacks of putting your student loans in forbearance.

Pros of Student Loan Forbearance

One of the biggest advantages of student loan forbearance is that it can give you a break from making payments when you're struggling financially. This can be particularly helpful if you lose your job or experience a medical emergency that makes it difficult to keep up with your monthly expenses. Forbearance can also help if you're going back to school or starting an internship that pays little to nothing.

Cons of Student Loan Forbearance

On the downside, forbearance means that interest will continue to accrue on your loans. This means that by the time your forbearance period ends, your loans will be larger and you will have paid more in interest over the life of the loan. Additionally, if you're not careful, you may end up in forbearance longer than necessary and be hit with even higher interest rates in the long run.

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