How Student Loan Hardship Forbearance Can Backfire

Episode 29 of Debt Payoff with Fexingo dives into student loan hardship forbearance — a seemingly helpful tool that can quietly inflate your debt. Lucas and Luna break down how interest capitalizes during forbearance, why it often adds thousands to the principal, and what borrowers should do instead. They walk through a real example: a $35,000 loan at 6% that balloons to $38,500 after just 12 months of forbearance. They also discuss alternatives like income-driven repayment plans and how to request a lower payment without freezing interest. If you're considering forbearance or have been on it, this episode gives you the numbers you need to decide. Hosted by Lucas and Luna for the Fexingo Business podcast network. #StudentLoans #Forbearance #Hardship #DebtPayoff #InterestCapitalization #IDR #LoanRepayment #FinancialLiteracy #DebtStrategy #PersonalFinance #EducationDebt #LoanServicing #BorrowerRights #CreditImpact #MoneyManagement #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo