 TITLE: Loan Forbearance: How to Know if It’s Right For You CONTENT: Is Forbearance the Right Choice for You?\n----------------------------------------\nAlthough a forbearance has many merits, consider whether you really need one before taking that step. Remember, it's a temporary solution that's only appropriate for a short-term financial crisis. Because interest continues to accrue during forbearance, putting payments on ice will cause debt to grow rather than diminish. If you just need a break for a few months, the extra fees may not be so bad, but if you take a whole year off, it can cost a hefty sum. A 12-month forbearance will add $1,575 to the balance of a $35,000 student loan debt with a 4.5% interest rate, and increase the loan's monthly payment by $17.\nAnalyze your financial circumstances to determine if you can manage the payments as normal and avoid a forbearance:\n*   **Reduce expenses.** Review your budget carefully to see if there are any bills you can trim or eliminate that will make up for the student loan payment. If you can, make the changes and route the savings to your loan.\n*   **Increase income.** If you're already living close to the bone, explore ways you can realistically augment your income. You may be able to secure a part-time job, babysit, drive for a ride-hailing service or walk dogs. Make a goal to earn at least enough every month to pay your loan as normal.\n*   **Sell unnecessary assets.** Many people have valuable items around the home, garage or yard that they don't need or use. If you do, sell them and parcel out the proceeds to your loan on a monthly basis. END