The term forbearance refers to the temporary postponement of loan payments, typically for a mortgage or student loan.
Lenders and other creditors grant forbearance as an alternative to forcing a property into foreclosure or leaving the borrower to default on the loan.
The companies that hold loans and their insurers are often willing to negotiate forbearance agreements because the losses caused by foreclosures or defaults typically fall on them.
Although it is primarily used for student loans and mortgages, forbearance is an option for any loan.
It gives the debtor extra time to repay what they owe. This helps struggling borrowers and benefits the lender, who frequently loses money on foreclosures and defaults after paying the fees.
Loan servicers may be less willing to work with borrowers on forbearance relief because they do not bear as much financial risk.

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