Which term describes changing loan terms with the same lender?

• A. Refinancing.
• B. Forbearance.
• C. Restructuring.
• D. Debt consolidation.

Answer: (C)

Restructuring is the process of modifying the terms of an existing loan while keeping the same lender. It involves changing aspects like the interest rate, repayment term, or payment amount to make the loan more affordable or workable, without paying off the old loan with a new one. This differs from refinancing, which replaces the old loan with a new agreement (often a new loan and potentially a new lender). Forbearance only pauses or reduces payments for a period without changing the overall term or principal, and debt consolidation combines multiple debts into one loan, which may or may not involve the same lender. So when the loan stays with the same lender but its terms are adjusted, that is restructuring.