Administrative forbearance

**Administrative forbearance**

Administrative forbearance is a temporary pause or reduction in loan payments granted by a loan servicer or lender, typically in response to specific circumstances such as financial hardship, natural disasters, or other qualifying events. Unlike deferment, administrative forbearance may not always require documentation of financial hardship and is often applied at the discretion of the lender. This option helps borrowers avoid default by providing temporary relief from payment obligations while they regain financial stability. It’s important for borrowers to understand the terms, as interest may continue to accrue during the forbearance period.