What does FBL mean in UNCLASSIFIED

A Forborne Loan is a loan that has been modified or restructured to allow the borrower to temporarily postpone or reduce their monthly payments. This is typically done when the borrower is experiencing financial hardship and is unable to make their scheduled payments.

Forborne Loans can provide borrowers with much-needed financial relief during difficult times. They can help to prevent foreclosure, improve credit scores, and reduce stress and anxiety.

Forborne Loans can have some risks, such as:

• Increased interest charges: Interest will continue to accrue on the loan balance, which can lead to a higher total cost of the loan.
• Damage to credit score: If the borrower misses payments or fails to meet the terms of the forbearance agreement, their credit score may be negatively impacted.
• Potential tax consequences: In some cases, forgiven or reduced loan payments may be considered taxable income.

The eligibility criteria for Forborne Loans vary depending on the lender. Generally, borrowers must demonstrate financial hardship, such as:

• Loss of income
• Medical expenses
• Natural disasters
• Military deployment

To apply for a Forborne Loan, you will typically need to:

• Contact your lender and explain your financial situation.
• Provide documentation to support your hardship.
• Complete a forbearance application.
• Agree to the terms of the forbearance agreement.

If you are having trouble making your loan payments, it is important to contact your lender as soon as possible. They may be able to offer you options such as a Forborne Loan or other payment assistance programs.