Someone may be eligible for general forbearance if they are temporarily unable to make their scheduled loan payments due to financial difficulties, medical expenses, or a change in employment.
Forbearance offers a temporary suspension or reduction of loan payments and can be a vital option for individuals facing unexpected challenges that impact their financial stability. Eligibility for a general forbearance is typically based on specific situations that hinder your ability to make timely loan payments.
Common Reasons for General Forbearance Eligibility
To qualify for a general forbearance, individuals must demonstrate a temporary inability to meet their regular monthly loan payment obligations. The primary circumstances that typically make someone eligible for this temporary relief include:
- Financial Difficulties: This widely applicable reason covers various situations where your income is insufficient to cover your loan payments along with other essential living costs. Examples could involve a significant decrease in earnings, unforeseen substantial expenses that deplete savings, or other economic hardships.
- Medical Expenses: Substantial costs related to medical care, such as those arising from a serious illness, injury, or ongoing treatment, can place considerable strain on an individual's financial resources. If these medical costs prevent you from affording your loan payments, forbearance may be an option.
- Change in Employment: Any disruption to your employment status, including job loss, a reduction in work hours, or a career transition that results in a temporary decline in income, can make you eligible for forbearance. This relief is intended to provide support while you stabilize your employment situation.
It's important to recognize that forbearance is designed as a short-term solution to help borrowers navigate periods of financial stress. The aim is to allow you to regain financial stability without defaulting on your loan obligations.
