How to File for Hardship With Private Student Loans

Student loans may be temporarily deferred due to economic hardship.

If your ability to pay your student loan is hindered by a temporary change of circumstances, you can file for an economic hardship deferment. If your request is granted, payments may be suspended for awhile, perhaps until your situation improves. Hardship deferrals cannot last forever, though, and the terms of your student loan dictate the maximum duration of the deferral as well as the eligibility criteria.

Things You'll Need

• hardship deferral application
• pay stubs

Instructions

1. Evaluate your situation. Carefully analyze your financial capabilities. Determine if a temporary suspension is actually necessary and appropriate, and if you will be able to afford the potential increase in costs after the deferment.

2. Consider alternative options. Search for and evaluate other ways of improving your financial situation or increasing your monthly income. Explain your situation to your cosigner and discuss the possibility of sharing the monthly repayment obligation until you are better able to handle the bill alone.

3. Obtain the economic hardship deferment application. If you cannot reduce your expenses or increase your income, and your cosigner is unwilling or unable to assist you, the only other avenue is to request a temporary suspension of your payments. Contact your student loan lender and get the paperwork to apply for a hardship deferment. The lender will mail you the application and other materials.

4. Complete and sign the form. Enter your information, including the details of your wages, income, assets, and liabilities.

5. Return the application and required documentation. Fax or mail the hardship application to your student loan lender. Be sure to include copies of your most recent pay stubs, bills, income tax returns, and any other required materials.

6. Follow up with the lender. Contact your student loan provider to verify it received your hardship deferment application. Comply with any requests for additional information or materials or clarification of any details you provided on the application.

Tips & Warnings

• Even after submitting the deferment request forms, you must continue making scheduled monthly payments on your student loan. You may cease making payments only after you have received confirmation from the lender that your hardship application has been approved.

References

• Citi Bank: Postpone Your Payments
• Citizens Bank: Economic Hardship Deferment
• Wells Fargo: Economic Hardship Deferment Qualifications
• Nolo: Student Loans -- Cancellation, Deferment, and Forbearance