Mandatory Forbearance for Internship/Residency

What is it?
A means of postponing payments on your student loans for up to 24 months (two years).

When do I qualify?  
You may qualify if you are a medical or dental intern or resident and either do not qualify for a deferment or have used all your deferment eligibility.

When is the Mandatory Forbearance a good idea?  
When your internship or residency program makes it difficult for you to make payments on your loans.

When is the Mandatory Forbearance not a good idea?  
When, despite your program, you are able to afford your student loan payments.  During all periods of forbearance, interest continues to accrue on your loans.  If you are unable to pay this interest as it accrues, it will be capitalized - that is, added to the principal of your loans. As a result, your balance and repayment term are likely to increase.

To learn more about Mandatory Forbearances, click here.