Jake
Indianapolis,#2Consumer Comment
Sat, December 09, 2006
Forbearence, a temporary postponement of payments, can be applied to your Stafford loan if delinquency persists while you are making payments. The lendor can do this without the borrowers knowledge or consent. This is specifically covered in the Master Promissary Note for Stafford Loans, which is a FEDERAL FORM created by the US DOE. The borrower signs this form before any funds are disbursed, and the signature, including an e-sign signature, is a legal and binding contract under FEDERAL LAW. The loan is paid in full when the borrower has made paid the original balance, plus all interest and fees, in full. Payments made in a forbearance are applied the same was as payments made in any other repayment status: to fees, accrued (and not yet capitalized) interest, and principle, in that order. What type of loan does your daughter have?