How to Receive an Economic Hardship Deferment
If you're unable to make your monthly educational loan payments due to a loss or decrease in income, you may be able to receive an economic hardship deferment on these loans if you meet certain criteria listed in the steps below.
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Things You'll Need
- Federal Economic Hardship Deferment form
- Evidence of public assistance payments
- Proof of Peace Corps service
- Pay stubs
Instructions
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Contact your educational loan lender to discuss all of your options, including receiving an economic hardship deferment. You can only receive a deferment based on economic hardship for 36 months, during the entirety of your loan, so be sure it's the right option.
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Find an Economic Hardship Deferment Request form from the Federal Family Education Loan Program (FFEL). This is the standard US Department of Education form, which all lenders use. Get the form from your lender or online.
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Fill out the form, which details eligibility requirements such as if you receive federal or state public assistance, if you serve as a Peace Corps volunteer or if the FFEL or the Federal Perkins Loan Program already granted you a deferment for this same time period.
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Qualify for an economic hardship deferment also if you meet the income criteria as explained in detail on the form. The form includes specific income limits and worksheets for you to determine your eligibility.
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Complete your form, date and sign it. Be sure you attach all required documentation, including pay stubs, proof of federal or state monetary assistance, proof of Peace Corps status or evidence of your granted deferment for the FFEL or Perkins program.
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Tips & Warnings
You may only use the Economic Hardship Deferment Request form if you made your FFEL loans on or after July 1, 1993.
You must reapply for an economic hardship deferment every 12 months.
The maximum time limit for you to use economic hardship deferment is 36 months. This limit is for the duration of your outstanding loans.
