 TITLE: What Happens When Loan Forbearance Ends? CONTENT: Due to the CARES Act and subsequent extensions, the servicers of most (but not all) federally backed student loans have put loan payments on hold through September 30, 2021. No interest will accrue while loan payments are suspended, and efforts to collect any delinquent payments on those loans have been suspended.\nOnce that relief period ends, borrowers with federally backed student loans will still have access to relief provisions built into their loan agreements. Those take the form of deferment—suspension of payments during which accrued interest payments are subsidized—and forbearance, which typically entails accrual of interest charges.\nBorrowers with federally subsidized student loans may qualify for loan deferments on the basis of financial hardship, unemployment, military service or college enrollment.\nThere are two types of student loan forbearance: general forbearance, similar to the forbearance offered by mortgage and credit card lenders in response to temporary financial difficulty, and mandatory forbearance, which servicers of federally backed student loans must grant under a variety of circumstances, including payments exceeding 20% of your monthly gross income and enrollment in medical internships, AmeriCorps, the Peace Corps or the National Guard.\nDuring forbearance, interest will continue to accrue on your loan. If you do not pay that accrued interest by the time your forbearance period ends, it will be added to your loan balance (or _capitalized_), resulting in a larger payoff amount. END