Forbearance
A postponement of loan payments, granted by a lender or creditor, for a temporary period of time. This is done to give the borrower time to make up for overdue payments.
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On November 9, 2005, former Sallie Mae employee Michael Zahara filed a federal lawsuit against the company, alleging that it had a pattern and practice of granting forbearance in a purposeful effort to increase total student loan debt.
Interest rates on college loans are generally lower than other financial loans, and borrowers who find themselves unable to make payments have a number of deferment and forbearance options.
forbearance A lender's postponement of foreclosure in order to give the borrower time an opportunity to make up for overdue payments. Forbes 500 An annual listing by Forbes magazine of the top 500 public firms in the U.S.
 See also: Interest, Close, Interest Rate, Period, Income
  
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