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Sallie Mae - Forbearance vs. Graduated Repayment Plan (Is one better than the other?)

Hatfield, PA |

I am 5 months late on my Sallie Mae loan ($79k balance). I normally pay $890/month but can't afford it.

Today, i called the lender and asked me for help. Luckily, they were willing to work for me and offered to send the late payments to the back end of the Loan and just charge me a $280 late fee. Then, they offered me 2 payment options to help:

Pick 1: Graduated Repayment
Pay $610/mo for 2 years and then $1,000. After 2 years, you will pay $1,040.02 for 56 months and then $397.83 for 168 mo

Pick 2: Forbearance
Charged $500/mo for interest which will get added to the principal and not pay for 1 yr. (I can apply for up to 5 yrs of forbearance, a yr at a time)

My credit is bad. I want to pay off loan but not get screwed over Long run. which option is best? Should i avoid forbearance?

Attorney Answers 2


  1. The forbearance is a godsend for those who need it, but as you noted, you do pay the interest and ultimately it is in your best interest to pay he graduated amount if you possibly can.

    Attorney Inga Stevens is licensed in Maine. She provides general information on Avvo.com. No attorney-client relationship arises out of the information given here.


  2. I've represented peolpe who did both. I don't know enough to give a complete answer, but either option can work. However, neither option will cure your bad credit by itself. If you have other issues causing bad credit, they must be addressed too. I would look at your entire credit history, not just one debt, if you want to fix yoiur credit.

    This communication is intended as general information and not specific legal advice, and this communication does not create an attorney-client relationship. To get legal advice, consult an attorney in your local area or the area where the issue is located. It should not be relied upon as legal advice. The response is based on the limited facts provided, and without any independent investigation of the author. Given additional or different facts, the response would likely change. The attorney providing this response is only licensed in Pennsylvania, and you should contact an attorney in your jurisdiction if it is outside Pennsylvania.