The term forbearance means that loan payments are postponed for a designated amount of time, which is temporary. The word forbearance is usually associated with student loans for college. Forbearance helps the person borrowing the money time to make up for the specified amount of money being overdue.
The forbearance on the student loan is good until six months after you graduate then the payments must come monthly so the loan can be paid back.
While the term forbearance is most commonly used in the student loan world, forbearance can also mean credit card forbearance; where a credit card company work with a borrower to delay credit card payments.
Click for the full glossary of credit card terms.
Similar Articles:
- Qualifying Ratio
- Currency Conversion Fee
- Credit Card Terms
- Credit Obligation
- Will settling credit card debt hurt your credit?
- Transactor
- Revolving Line of Credit
