Forms for Voluntary Forbearance

Forbearance is a source of relief during financially difficult times. Most of the time, forbearance is sought for student loan payments. The lender will agree to a reduction in payment amount or a brief interruption in payments while the debtor gets back on his feet. Forbearance should be used carefully, because the debtor is still responsible for accruing interest on the debt. This is a voluntary process, started by filling out a simple form.

Types of Forbearance

Before you apply for forbearance, you need to know what kind you will need. One factor is whether the loans are federal or private. You will deal with different lenders and different forms if you borrowed from the government rather than a bank. One difference is that private lenders may want to negotiate an extension of the time for repayment, or make arrangements for smaller payments. With federal loans, the forbearance process is more structured and involves a break from payments.

Eligibility

The cause for the forbearance also matters. Some commonly accepted causes include enrollment in school, poor health problems and financial problems; in some cases there is excessive debt forbearance. All of these are widely accepted reasons for eligibility. Other reasons include active duty military service and, in some cases, entering the Peace Corps or Teach for America.

Where to Find Forms

The first place to go for forbearance forms is your lender. Many times they are located on the lender's website. Federal loan forbearance forms can be found on the Department of Education Federal Student Aid program website, and at larger federal lenders like Sallie Mae and Access Group. In most cases you can download the form and fax or email it back to the lender.

Other Types of Forbearance

There is another type of forbearance, in the real estate arena. It is meant to save homeowners about to default on their mortgages. With this type of arrangement, the lender may consent to delay foreclosure if the borrower agrees to catch-up his payment schedule within a certain amount of time. The best way to take advantage of this forbearance option is to negotiate with your lender.