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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).
Rating Newest Oldest. Best Answer: A guarantor is someone who pledges that a loan or other type of debt will be paid. Usually, a guarantor agrees to pay or perform another person's debt or duty should that person fail to do so. The term is most commonly used in reference to financial assistance.A parent who cosigns a student loan for a child could be considered a guarantor â should the child default on his or her debt, the parent would be held liable for the remainder of the loan.he term is most commonly used in reference to financial assistance. A parent who cosigns a student loan for a child could be considered a guarantor â should the child default on his or her debt, the parent would be held liable for the remainder of the loan.