PERKINS STUDENT LOAN DEFERMENTS

Under certain conditions, a borrower may have his or her Nursing Student Loan deferred.


General Information

During times of deferment, no interest accrues and no payments are required

The borrower’s account must be current before any deferment can be granted

It is the borrower’s responsibility to initiate the deferment requests in a timely fashion

The deferment request form must be signed an dated by the borrower, and certified by the appropriate official before deferment can be granted

Defaulted loan accounts are not eligible for deferment unless the only reason for the default was the borrowers failure to file a deferment request on a timely basis.

Student -
Deferment can be granted for one semester at a time while the borrower is enrolled and in attendance as a regular student in at least a half time course of study at an eligible institution.

Rehabilitation Training -
Deferment can be granted to any borrower that is receiving, or scheduled to receive, services under a program designed to rehabilitate disabled individuals.

The rehabilitation agency must be licensed, approved, certified, or otherwise recognized as providing rehabilitation training to disabled individuals.

The program must be structured in a way that requires a substantial time and effort commitment by the borrower which would prevent them from engaging in full-time employment.

Graduate Fellowship -  Deferment can be granted to any borrower that is enrolled and in attendance as a regular student in a course of study that is part of a graduate fellowship program or is engaged in graduate or post-graduate fellowship-supported study (such as a Fulbright grant) outside the United States.

Internship/Residency - (Applies to all Perkins and National Direct Student Loans made between October 1, 1980 and July 1, 1993) - Deferment can be granted one year at a time, for a maximum of two years while the borrower is serving in an internship program that is required in order to receive professional recognition required to begin professional practice or serving in an internship or residency program leading to a degree or certificate awarded by an institution of higher education, a hospital, or a health care facility that offers postgraduate training.

Inability to secure full-time employment -   Deferment can be granted one year at a time, for a maximum of three years, during time periods in which the borrower is seeking and unable to find full-time employment.

Economic Hardship -   Deferment can be granted one year at a time, for a maximum of three years, during time periods in which the borrower is suffering an economic hardship. In order to qualify for this deferment, the borrower must provide documentation that the borrower falls into one of the categories listed below.

Has been granted an economic hardship deferment under either the FDSL or FFEL programs for the same time period

Is receiving payment under a federal or state public assistance program, such as Aid to Families with Dependent Children, Supplemental Security Income, Food Stamps, or state general public assistance

Is working full-time and earning a total monthly gross income that does not exceed the greater of the monthly earnings of an individual earning the minimum wage, or an amount equal to 100% of the poverty lime for a family of two, as determined in accordance with section 673(2) of the Community Service Block Grant Act

Is not receiving total monthly gross income that exceeds twice the amount specified in the previous paragraph, and after deducting an amount equal to the borrower’s monthly payments on federal post-secondary education loans, the remaining amount of that income does not exceed the amount specified in the previous paragraph

Is working full-time and has a Federal educational debt burden that equals or exceeds 20% of the borrower’s adjusted gross income and the difference between the borrower’s adjusted gross income minus such burden is less than 220% of the greater of the annual earnings of an individual earning the minimum wage or the income official poverty line applicable to a family of two

Military and Volunteer Service - (Applies to National Direct and Perkins Loans made between October 1, 1980 and July 1. 1993) - Deferment can be granted one year at a time, for a period not to exceed three years, while a borrower is: 1) on full-time active duty in the Armed Forces or the National Oceanic and Atmospheric Administration Corps; 2) in volunteer service as a member of the Peace Corps or Vista; 3) a full-time volunteer for a tax-exempt organization, or 4) an officer in the Commissioned Corps of the US Public health Service.

Temporary Disability - (Applies to National Direct and Perkins Loans made before July 1, 1993) - Deferment can be granted one year at a time, for a maximum of three years for any time period in which the borrower is: 1) temporarily totally disabled; 2) caring for a temporarily totally disabled spouse, or 3) caring for a temporarily totally disabled dependent. The borrower can not be employed or attending school during the deferment period, and an affidavit of temporary total disability, certified by a physician, is required.

Forbearance -  Forbearance means the temporary cessation of payments, allowing an extension of time for making payments, or temporarily accepting smaller payments than previously were scheduled. Forbearance can be granted one year at a time, for a maximum of three years if: 1) the amount of the payments the borrower is obligated to make on title IV loans each month is collectively equal to or greater than 20% of the borrower’s total monthly gross income; 2) the institution determines that the borrower should qualify for the forbearance due to poor health or for other acceptable reasons, or 3) The Secretary of Education authorizes a period of forbearance due to a national military mobilization or other national emergency. Note that interest continues to accrue during periods of forbearance.

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This page was developed by and is maintained by Dawn M. Herzig- Financial Services  mailto:herzig@uwosh.edu