Economic Hardship Deferment(new requirements effective July 1, 2009)
An economic hardship deferment is available for borrowers whose outstanding loans were all received on or after July 1, 1993. To qualify for an economic hardship deferment you must meet one of the following requirements:
- You have been granted an economic hardship deferment under the FDLP for the same time period.
- You are receiving or received federal or state public assistance such as TANF, SSI, food stamps, or state general public assistance.
- You are serving as a Peace Corp volunteer.
- You work full-time and your monthly income does not exceed the larger of the Federal Minimum Wage Rate ($7.25/hour) or 150% of the poverty guideline for your family size and state.
Economic hardship deferments are granted for periods of 1-year at a time for a maximum of 3-years.
To receive an economic hardship deferment you must complete an Economic Hardship Defermnet form and submit it to your lender(s) with appropriate documentation. Failure to return the appropriate documentation will result in your lender denying the deferment request.
NOTE: There were additional economic hardship qualifying options for borrowers prior to July 1, 2009 but the options were removed in recent legislation.
If you have any questions regarding economic hardship deferment, please contact one of our Default Prevention Counselors toll free at (877) 293-8946 or email us.