The shockingly high price of student loan forbearance

Getting a forbearance on your student loans can be a good short-term option if you’re struggling with repayment. However, the interest can really add up, and you might end up paying thousands of dollars on top of the loan after just a few years of forbearance.

Check out this post from student loan attorney Adam S. Minsky and watch the video below for one student’s story about the long-term costs of forbearance.

Remember, the interest that accrues on your student loans when they’re in forbearance is capitalized, which means it’s added to the original principal loan balance. Thus, interest will continue to accrue on that higher total balance, so you’ll end up paying even more in the long run.

While forbearance can help people who are unemployed or in economic distress avoid default, it’s not a long-term solution for managing your student loans. Ignoring them won’t make them go away–it’s better to deal with them sooner than later and avoid paying thousands extra in interest and fees. If you’re struggling to repay your student loans, give Rick and Andy a call at 1-888-234-3907 or tweet us @CFGCollege.