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.