Loan Forbearance and Interest Payment

Loan Forbearance and Interest Payment

If you have federal student loans, you might be eligible to get part of the interest that accumulates during your service term paid for you.

Forbearance means that you neither make payments nor pay interest on your loan(s) over a specified period of time. In other words, you will not have to make payments on your loan(s) while you serve. Then after you successfully complete service, the National Service Trust will pay the interest that gathered while you were a member.

Loans do not go into forbearance automatically. There is a forbearance process to follow, the earlier in your term, the better.

1.)   Submit a “forbearance request” found on the left side of the screen in your AmeriCorps Portal ( You’ll need to know the name of the lending school or institution, including the city, state and zip code.

2.)   After you have finished your term and UCC has finished processing your exit paperwork you’ll receive an email notifying you of your successful completion. You may then go back to your AmeriCorps Portal and complete the “interest accrual request”, also found on the left side of your screen.

Forbearance applies to most federal loans with two exceptions; Parent-Plus loans and Perkins Loans.

Private loans do not qualify for forbearance.

To find out how to calculate the amount of interest the Trust will pay click here.

A note for those planning on working in the non-profit or government sector in the future: If you put your loans into forbearance and want to count your service term toward the 10-year Public Service Loan Forgiveness program, there are specific steps to follow. Follow the hyper link for more information.

For more information about forbearance and interest payment visit the CNCS website.