repayment, forbearance deferment - …client.ecsi.net/training/documents/perkins_201.pdf ·...

REPAYMENT,

FORBEARANCE

&

DEFERMENT

• Federal Perkins Loan Regulations

2009-2010 Handbook

www.ifap.ed.gov

Interactive

Agenda:

•Relates to enrollment

•½ time or no longer

enrolled

•9 months

•Follows a postponement

•6 months

•Not counted towards 10 years

**See Volume 6 – Chapter 4 **

•School specific

•Monthly, bi-monthly or quarterly

•5% interest

•CANNOT be capitalized

Coupons –

Billing Statements -

ACH

Coupons – 30 days

Billing Statements -

ACH

Payments must be applied in the following

order:

•Collection costs

•Late charges

•Accrued interest

•Principal

•Prepay Principal

•Advance/Suspense

•MAY prepay all or

part of loan at any

time without penalty

•Optional •MAY NOT exceed 20%

•May NOT charge during collection proceedings

•Deferment

•Forbearance

•Temporary postponement of payments

•Payments are not required

•Interest does not accrue

•Entitled to post-deferment grace period

•Do not have to be in writing

•Required documents

•Change in deferment status

•Other loans

•Default

•New repayment agreement

•De-accelerate the loan

•Late fees first

•In-school deferment

•Graduate Fellowship deferment

•Rehabilitation training deferment

•Unemployment deferment

•Economic hardship deferment

•Military Service deferment

•13 month post-active duty deferment

•Enrolled at least ½

time

•Enrolled for

purpose of obtaining

a degree

•Entitled to a deferment of 12 months if

enrolled at least ½ time for a full academic

year and intends to do the same next year

•Attending as a regular

student

•Part of a Graduate

Fellowship Program

approved by the DOE

•Must provide

certification

•Approved rehabilitation training program for

disabled individuals

•Must provide required documentation

•3 years

•Seeking and unable

to find full-time

employment

•Schools determine

documentation

•Up to 1 year

•Must provide required documentation

Other loans in an Economic Hardship

Receiving Federal/State Public Assistance

Working less than full-time

and 150% rule

More than twice 150% rule

•Volunteer in the

Peace Corps

•Longer than 1 year at

a time

•CANNOT collectively

exceed 3 yrs.

•National Guard Duty in

connection with:

War

Military Operation

National Emergency

•National Guard or Armed Forces Reserve & Members of the

Armed Forces who are in retired status

Eligible for a 13 month period of Deferment

Following completion of their active duty service

If enrolled at the time or with 6 months prior to activation

Temporary postponement of payments

Interest accrues

Not included in 10 yr. repayment period

Borrower may pay interest during

Forbearance, but schools MAY NOT

requite it.

Financial hardship

Poor health

Other acceptable reasons

•Must request a

forbearance

•Must provide supporting

documentation of the

reason

•School confirms this

agreement

•Up to one year at a time

•May be renewed

•Periods MAY NOT exceed a total of 3 yrs.

•May begin retroactively

•Equal to or greater than 20%

•The borrower must submit the following

documentation:

1. Evidence of total monthly gross income

2. Evidence of monthly payments on his

FSA loans.

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