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A period during which your monthly loan payments are temporarily suspended or reduced. Your lender may grant you forbearance if you are willing but unable to make loan payments due to certain types of financial hardships. During forbearance, principal payments are postponed but interest continues to accrue. Unpaid interest that accrues during the forbearance will be added to the principal balance (capitalized) of your loan(s), increasing the total amount you owe. (1) Forbearance means the temporary cessation of payments, allowing an extension of time for making payments, or temporarily accepting smaller payments than previously were scheduled. (2) Upon receipt of a request and supporting documentation, the institution shall grant the borrower forbearance of principal and, unless otherwise indicated by the borrower, interest renewable at intervals of up to 12 months for periods that collectively do not exceed three years. (3) The terms of forbearance must be agreed upon, in writing, by the borrower and the institution. The school confirms this agreement by notice to the borrower, and by recording the terms in the borrower’s file. (4) In granting a forbearance under this section, an institution shall grant a temporary cessation of payments, unless the borrower chooses another form of forbearance subject to paragraph (d)(1) of this section. (5) An institution shall grant forbearance if; (i) the amount of the payments the borrower is obligated to make on title IV loans each month (or a proportional share if the payments are due less frequently than monthly) is collectively equal to or greater than 20 percent of the borrower’s total monthly gross income; (ii) the institution determines that the borrower should qualify for the forbearance due to poor health or for other acceptable reasons; or (iii) the Secretary authorizes a period of forbearance due to a national military mobilization or other national emergency. (6) Before granting a forbearance to a borrower under paragraph (d)(5)(i) of this section, the institution shall require the borrower to submit at least the following documentation: (i) evidence showing the amount of the most recent total monthly gross income received by the borrower; and (ii) evidence showing the amount of the monthly payments owed by the borrower for the most recent month for the borrower’s title IV loans. (7) Interest accrues during any period of forbearance. (8) The institution may not include the periods of forbearance described in this paragraph in determining the 10-year repayment period.