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What is Loan Forbearance?

April 26, 2017Bank defer deferment forbearance Lender lenders loan Loans student loans

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What is Loan Forbearance?

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Loan forbearance is a situation in which a lender allows a debtor to deviate from the payment plan described in the original terms and conditions of the loan, at least for a short period of time. During the period of forbearance, the lender does not make any attempt to collect the past due amount. However, should the debtor be unable to bring the account up to current status by an agreed upon date, the lender is free to pursue collection of the total loan amount.