Options to Postpone or Modify Repayment

Economic Hardship

If you are experiencing unexpected financial hardship—such as involuntary job loss, illness, unpaid maternity leave, or a significant reduction in income—you may be eligible to request a temporary pause in payments. Forbearance is typically granted in 3-month increments, and eligibility is based on factors such as: 

• The nature and expected duration of your hardship 

• Your payment history and willingness to repay 

• Whether you’ve made the required number of consecutive monthly payments since any prior forbearance

• Whether you’ve reached the maximum allowable forbearance for your loan term

• Borrowers with a loan term of 10 years or more may receive up to 12 months of forbearance over the life of the loan. For loans under 10 years, the maximum is 1 month of forbearance per year of the loan term (e.g., a 5-year loan allows up to 5 months total). 

To be eligible:

• You must have made 12 consecutive monthly payments since loan origination.

• A minimum of 12 months must pass between any two forbearance periods.

• All requests must include documentation supporting the hardship and its expected duration.

Natural Disaster

If your ZIP code of residence is declared as an Individual Assistance zone by FEMA, due to a natural disaster. 

Military Service

You may postpone repayment of your loan(s) while you are: 

1.  serving on active duty during a war, other military operation, or national emergency, or 

2. performing qualifying National Guard duty during a war, other military operation, or national emergency.

Note: to qualify for the Military Service forbearance, you must provide MOHELA with a copy of your military orders or a written statement from your commanding or personnel officer, or you must have your commanding or personnel officer certify your service. 

Medical Residency/Fellowship

After loan disbursement, if a borrower with a DMD, DDS, MD, DPM or DO degree extends a medical residency or begins fellowship for further specialization, we may agree under certain circumstances to allow a borrower to make $100/month payments for up to two 12-month periods (not to exceed 36 months in aggregate with any other forbearance offered by Laurel Road), provided that we receive acceptable documentation (including updated documentation) of evidence of program enrollment. 

Return to Graduate School

After loan disbursement, if a borrower returns to graduate school or enrolls in a certificate program for post-doctoral studies, we may agree, under certain circumstances, to allow for a postponement of payments for one or more 6-month periods (not to exceed 36 months total or in aggregate with any other forbearance offered by Laurel Road), provided that we receive acceptable, updated documentation showing evidence of enrollment of at least half-time. 

Note: by using a Continuing Education Forbearance Option, interest will capitalize at the end of the forbearance period and the term of the loan will be extended, but we will not re-amortize for the remaining term of the loan.