It’s not uncommon for financial circumstances to change for student loan borrowers over the life of their loans. Whether it’s an unexpected illness, a job loss, or a pandemic, emergencies and unforeseen circumstances can make it more difficult to make regular payments on your student loans. When this happens, putting payments on pause through forbearance or deferment can help borrowers prioritize other financial obligations before resuming payments on their student loans.
More than 42 million Americans across the nation shoulder some of the student loan debt burden, with the total average balance for federal and private borrowers at a staggering $40,780, according to the Education Data Initiative. Per the most recent figures from the Office of Federal Student Aid, over 50% of borrowers (25.5 million) have loans in forbearance as of September, 2022, with 2.8 million borrowers in deferment as of Q3 of 2022.
