Perkins Loan Forbearance

Once you begin repaying your loan, your life circumstances may at some point make it difficult for you to continue paying your Perkins loan or at least, difficult to pay the scheduled amount. If this should happen to you, your lending institution may be able to help by granting you a forbearance.

Forbearance is a way to extend the time you have to repay your loan. With a forbearance, you can temporarily lower or postpone your payments. Your loan holder may grant forbearance if you are willing but temporarily unable to make full or partial payments and do not qualify for a deferment. (See our article on Perkins Loan Deferments.)

If you find yourself in difficult financial circumstances, you can request that your lender grant a forbearance. You will need to fill out an application that requires you to specifically describe your situation and indicate your reason for requesting the Perkins Loan forbearance. You will choose from the following statements:

I request forbearance on my Perkins loans because:

  • My title IV SFA loan payments are equal to or greater than 20% of my total monthly income.
  • I am unable to make scheduled payments due to ‘Poor Health’ (temporarily – totally disabled)
  • Caring for a dependent who is disabled.
  • Other acceptable reason

If you are claiming disability, you will need to show evidence of that disability; your physician will need to fill out part of the form.
You will also need to provide information about your income and expenses.

Since interest must be paid during a period of forbearance, you will also have to indicate how you will pay the interest.

You may also request a reduction in the amount of money you must pay each money.

Keep in mind that forbearances are generally discretionary so your lender is not obligated to grant Perkins loan forbearance. Continue to pay on your loan until you receive a decision on your request for Perkins Loan forbearance.

Perkins loan forbearances can be granted for twelve month periods for a maximum of 36 months. Then you must return to your normal schedule of payments.