Former college students who experience financial hardship during student loan repayment periods may qualify for payment deferrals. Deferred payment status does not eliminate your debt, but rather freezes the repayment status for a set time. During the deferment period, you do not have to make payments toward your student loan balance. An economic hardship deferral for federal student loans may be granted for one of the following reasons: you have also been granted an economic hardship for a Perkins loan administered by your school; you receive public assistance, such as food stamps or TANF; or you meet low-income eligibility rules.
Instructions
1. Obtain a Direct Loans Economic Hardship Deferment Request form.
2. Complete Section 1, "Borrower Identification." List your name, Social Security Number, address and current phone number.
3. Complete Section 2, "Deferment Request." Include the date of your request and check the box that indicates the reason you seek deferment. Attach proof to your application that supports your reason. For example, if you request economic hardship because you receive public assistance, attach a determination of eligibility letter from the county you receive assistance from or an account statement that shows your assistance payments. If you request deferment for low-income status, review the income chart on page 2 of the form. If you meet income restrictions based on the size of your family, attach proof of your pay stubs for the most recent month.
4. Read the information in Section 3. You must understand the information, certify that the information you provide in the application is correct and authorize your schools or loan servicing company to contact you in the future by phone concerning the repayment of your loan balance.
5. Sign and date the application and submit the form with your documents. Mail the information to:
U.S. Department of Education
Direct Loan Servicing Center
P.O. Box 5609
Greenville, TX 75403-5609
Tags: Complete Section, Deferment Request, economic hardship, Economic Hardship, loan balance, proof your, public assistance