Time Length And Description For Deferments / Forbearance Essay

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TIME LENGTH & DESCRIPTION FOR DEFERMENTS/FORBEARANCE (In order of appearance on Website) • Unemployment Deferment – 12 months per Request (interest accrues monthly) Maximum number allowed: 36 month/life of loan. Has to submit evidence of unemployment benefits/employment agency enrollment/proof of previously granted Unemployment Deferment through another servicer. • Economic Hardship – 12 months per Request (interest does not accrue) Maximum number of months allowed: 36 month/life of loan. Has to submit evidence of receiving state/federal assistance (SNAP, SSI, Medicaid/Medicare, TANF), working full time and under 150% of the Poverty Line, monthly Federal loan payments cause “Hardship”, proof of Economic Hardship with another servicer, volunteer in the Peace Corps. • Mandatory Forbearance – 6 months per Request (interest accrues monthly ) Maximum number of months allowed: 36 month/life of loan. Has to submit proof of taxable income/total monthly income/total amount of monthly payments on each Title IV loans. Forbearance can be back-dated if the account is past due, but cannot be applied if the account has $0.00 in principal due. • General Forbearance – 6 months per Request (interest accrues monthly) Maximum number of months allowed: 36 months/life of loan. The Borrower has to submit a reason for the forbearance request, example; financial difficulties/change in employment/medical expenses/other (must explain situation). Forbearance can be back-dated if the account is

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