ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -You are still responsible for the interest accrued during a forbearance. You can pay the interest during the forbearance period or your servicer may add it to the balance of your loans when the forbearance ends. Interest accrues on all loans, including federal Subsidized loans.

Detailed explanation-2: -In most cases, interest will accrue during your period of deferment or forbearance (except in the case of certain forbearances, such as the one offered as a result of the COVID-19 emergency).

Detailed explanation-3: -With forbearance, you won’t have to make a payment, or you can temporarily make a smaller payment. However, you probably won’t be making any progress toward forgiveness or paying back your loan. As an alternative, consider income-driven repayment. Student Loan Payment Pause Extended.

Detailed explanation-4: -Forbearance is a temporary postponement of loan payments granted by a lender instead of forcing the borrower into foreclosure or default. The terms of a forbearance agreement are negotiated between the borrower and the lender.

Detailed explanation-5: -Subsidized Loans do not accrue interest while you are in school at least half-time or during deferment periods. Unsubsidized Loans are loans for both undergraduate and graduate students that are not based on financial need.