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ECONOMIC HARDSHIP DEFERMENT REQUEST OMB No. 1845-0011
William D. Ford Federal Direct Loan (Direct Loan) Program / Federal Family Form Approved
Education Loan (FFEL) Program / Federal Perkins Loan (Perkins Loan) Program Exp. Date 9/30/2018
WARNING: Any person who knowingly makes a false statement or misrepresentation on this form or on
any accompanying document is subject to penalties that may include fines, imprisonment, or both, under
the U.S. Criminal Code and 20 U.S.C. 1097.
SECTION 1: BORROWER INFORMATION
Please enter or correct the following information.
Check this box if any of your information has changed.
City State Zip Code
Telephone - Primary
Telephone - Alternate
SECTION 2: BORROWER DETERMINATION OF DEFERMENT ELIGIBILITY
Carefully read the entire form before completing it. Complete Section 2 in its entirety. Maximum cumulative
eligibility is 36 months per loan program. The federal student loan programs include the Direct Loan, FFEL, and Perkins
Loan programs. For FFEL Program borrowers only, you are only eligible if all of your FFEL Program loans were first disbursed
one or after July 1, 1993, or if you had no balance on a FFEL Program loan that was disbursed before July 1, 1993 when you
received a loan on or after July 1, 1993. Instead of deferment, consider a repayment plan that determines your monthly
payment amount based on your income. Visit StudentAid.gov/IDR for more information.
1. Have you been granted an Economic Hardship 3. Are you serving as a Peace Corps volunteer?
Deferment on a loan made under another federal Yes - Attach documentation certifying your
student loan program for the same period of time period of service. Skip to Section 3.
for which you are applying for this deferment? No - Continue to Item 4.
For example, check "yes" if you are requesting
deferment on your Direct Loans because you are on 4. Do you work full time (see Section 5)?
the deferment on your FFEL Program loans.
Yes - Attach documentation of the deferment.
Yes - Continue to Item 5.
Skip to Section 3. No - You are not eligible for this deferment.
No - Continue to Item 2.
5. What is your monthly income?
2. Have you received or are you receiving payments You must attach documentation of your monthly
under a federal or state public assistance program income. Monthly income is either (you choose):
that supports the period of time for which you are
applying for this deferment? ? Your gross income from all sources or
Qualifying programs include: Temporary ? One-twelfth of the Adjusted Gross Income from
Assistance for Needy Families (TANF), Supplemental your most recent federal income tax return.
Security Income (SSI), Supplemental Nutrition
Assistance Program (SNAP), state general public 6. What is your family size (see section 5)?
assistance, or other means-tested benefits.
Yes - Attach documentation of the payments. 7. Is the amount you reported in Item 5 less than 150%
Skip to Section 3. of the poverty guideline for your family size and
No - Continue to Item 3. state of residence (see Table 2 in Section 5)?
Yes - Continue to Section 3.
Page 1 of 4 No - You are not eligible for this deferment.
Borrower Name Borrower SSN
SECTION 3: BORROWER REQUESTS, UNDERSTANDINGS, CERTIFICATIONS, AND AUTHORIZATION
? To defer repayment of my loans for the period during which I have an economic hardship, as described in Section 2.
? That my deferment begin on:
? If indicated, to make interest payments on my loans during my deferment.
I understand that:
? I am not required to make payments of loan principal or interest during my deferment.
? My deferment will begin on the later of the date I became eligible or the date that I requested.
? My deferment will end on the earlier of the date that I exhaust my maximum eligibility, the certified deferment end
date, or when I am no longer eligible for the deferment for another reason.
? If I am a Perkins Loan borrower, I will receive a 6-month post-deferment grace period beginning on the date I no
longer qualify for the deferment.
? Unless I am a Peace Corps volunteer, my deferment will be granted in increments of 1 year. If I continue to be eligible
for an Economic Hardship Deferment after 1 year, I may reapply, subject to the cumulative maximum.
? Interest may capitalize on my loans during or at the expiration of my deferment or forbearance, but interest never
capitalizes on Perkins Loans.
I certify that:
? The information I have provided on this form is true and correct.
? I will provide additional documentation to my loan holder, as required, to support my deferment eligibility.
? I will notify my loan holder immediately when my eligibility for the deferment ends.
? I have read, understand, and meet the eligibility requirements in Section 2.
I authorize the entity to which I submit this request and its agents to contact me regarding my request or my loans at any
cellular telephone number that I provide now or in the future using automated telephone dialing equipment or artificial or
prerecorded voice or text messages.
Borrower's Signature Date
SECTION 4: INSTRUCTIONS FOR COMPLETING THE DEFERMENT REQUEST
Type or print using dark ink. Enter dates as month-day-year (mm-dd-yyyy). Example: March 14, 2015 = 03-14-2015. Include
your name and account number on any documentation that you are required to submit with this form. If you want to apply
for a deferment on loans that are held by different loan holders, you must submit a separate deferment request to each loan
holder. Return the completed form and any required documentation to the address shown in Section 6.
SECTION 5: DEFINITIONS
Capitalization is the addition of unpaid interest to The example loan has a 6% interest rate and the example
the principal balance of your loan. Capitalization causes deferment or forbearance lasts for 12 months and begins
more interest to accrue over the life of your loan and when the loan entered repayment. The example compares
may cause your monthly payment amount to increase. the effects of paying the interest as it accrues or allowing it to
Interest never capitalizes on Perkins Loans. Table 1 capitalize.
(below) provides an example of the monthly payments
and the total amount repaid for a $30,000 unsubsidized
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SECTION 5: DEFINITIONS (CONTINUED)
A deferment is a period during which you are Full-time employment means working at least 30 hours
entitled to postpone repayment of your loans. Interest is per week in a position expected to last at least 3 consecutive
not generally charged to you during a deferment on months.
your subsidized loans. Interest is always charged to you The holder of your Direct Loans is the Department. The
during a deferment on your unsubsidized loans. On holder of your FFEL Program loans may be a lender, guaranty
loans made under the Perkins Loan Program, all agency, secondary market, or the Department. The holder of
deferments are followed by a post-deferment grace your Perkins Loans is an institution of higher education or the
period of 6 months, during which time you are not Department. Your loan holder may use a servicer to handle
required to make payments. billing and other communications related to your loans.
Family size includes (1) you, (2) your spouse, (3) References to "your loan holder" on this form mean either
your children if they receive more than half of their your loan holder or your servicer.
support from you, including unborn children who will A subsidized loan is a Direct Subsidized Loan, a Direct
be born during the deferment period, and (4) other Subsidized Consolidation Loan, a Federal Subsidized Stafford
people if, at the time you request this deferment, they Loan, portions of some Federal Consolidation Loans, Federal
live with you, receive more than half their support from Perkins Loans, NDSL, and Defense Loans.
you, and will continue to receive this support from you
for the deferment period. Support includes money, gifts, An unsubsidized loan is a Direct Unsubsidized Loan, a
loans, housing, food, clothes, car, medical and dental Direct Unsubsidized Consolidation Loan, a Direct PLUS Loan, a
care, and payment of college costs. Federal Unsubsidized Stafford Loan, a Federal PLUS Loan, a
The Federal Family Education Loan (FFEL)
Federal SLS, and portions of some Federal Consolidation
Program includes Federal Stafford Loans, Federal PLUS
Loans, Federal Consolidation Loans, and Federal The William D. Ford Federal Direct Loan (Direct Loan)
Supplemental Loans for Students (SLS). Program includes Federal Direct Stafford/Ford (Direct
The Federal Perkins Loan (Perkins Loan) Program
Subsidized) Loans, Federal Direct Unsubsidized Stafford/Ford
includes Federal Perkins Loans, National Direct Student
(Direct Unsubsidized) Loans, Federal Direct PLUS (Direct PLUS)
Loans (NDSL), and National Defense Student Loans
Loans, and Federal Direct Consolidation (Direct Consolidation)
Table 1. Capitalization Chart
Treatment of Interest with Loan Amt. Capitalized Outstanding Monthly Number of Total Repaid
Deferment/Forbearance Interest Principal Payment Payments
Interest is paid $30,000 $0 $30,000 $333 120 $41,767
Interest is capitalized at the $30,000 $1,800 $31,800 $353 120 $42,365
Interest is capitalized $30,000 $1,841 $31,841 $354 120 $42,420
quarterly and at the end
Table 2. 150% of the Poverty Guidelines for 2017 (Monthly)
Family Size Alaska Hawaii All Others
1 $1,882.50 $1,732.50 $1,507.50
2 $2,536.25 $2,333.75 $2,030.00
3 $3,190.00 $2,935.00 $2,552.50
4 $3,843.75 $3,536.25 $3,075.00
5 $4,497.50 $4,137.50 $3,597.50
6 $5,151.25 $4,738.75 $4,120.00
7 $5,805.00 $5,340.00 $4,642.50
8 $6,458.75 $5,941.25 $5,165.00
Each add'l $653.75 $601.25 $522.50
If you do not live in the United States, use the poverty guideline amount in the column labeled "All Others".
Page 3 of 4
Is it bad to put student loans on deferment? Student loan deferment isn't necessarily a bad idea, but it can be expensive if you have private or unsubsidized federal student loans. Both of these loans accrue interest during deferment, and you’ll be responsible for paying it.
Title: Economic Hardship Deferment Request
Subject: Use this form to request an economic hardhsip deferment on your Direct Loans, FFEL Program Loans, and Perkins Loans
Author: U.S. Department of Education
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