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A forbearance is a temporary modification of the monthly payment obligation on an education loan. Both federal education loans and private student loans offer forbearances, but with different criteria and terms. Forbearance options on private student loans are generally more limited than the forbearance options on federal education loans. There are three main types of forbearances: 1  Temporary cessation of monthly payments. 2  Temporary reduction in the monthly payment amount (e.g., interest-only payments).
Look up forbearance in Wiktionary, the free dictionary. In the context of a mortgage process, forbearance is a special agreement between the lender and the borrower to delay a foreclosure.The literal meaning of forbearance is âholding back.â. Loan borrowers sometimes have problems making payments.This may cause the lender to start the foreclosure process.ook up forbearance in Wiktionary, the free dictionary. In the context of a mortgage process, forbearance is a special agreement between the lender and the borrower to delay a foreclosure.