The Catholic University of America

Financial Aid >Post Graduation >Repayment >Deferment & Forbearance

 

- DEFERMENT & FORBEARANCE -

 

Deferment allows you to postpone payments on your Federal Loans for a specified period of time. While in deferment, interest does not accrue on your Subsidized Stafford Loans. Unsubsidized loans continue to accrue interest which is capitalized at the end of the deferment period.

Forbearance is also available to postpone payments on both your Federal and Private Loans. Unlike deferment, interest continues to accrue on all loans, including the Subsidized Stafford loan.

 

Economic Hardship Deferment | Unemployment Deferment | Military Deferment
Discretionary Forbearance | Administrative Forbearance | Mandatory Forbearance

 


- ECONOMIC HARDSHIP DEFERMENT -

Postpones eligible Federal Loan payments for up to12 months at a time, up to 36 months. Borrower must reapply every 12 months.

To qualify all of outstanding Federal loans must have been disbursed on or after July 1, 1993 and you must meet one of the following criteria.

  • Serving as a Peace Corps volunteer.
  • Receiving federal or state public assistance.
  • You have been granted an economic hardship deferment under either the Federal Direct or Federal Perkins Loan Program for the same period of time
  • You are not working full-time and your monthly income does not exceed the larger of two times the federal minimum wage rate or two times the poverty line income for a family of two in your state. To qualify under this criterion, you must also document that after deducting your total monthly payments (at a 10 year repayment schedule) on all of your federal education loans from your monthly income, the remaining amount must not exceed the larger of the federal minimum wage rate or the poverty line income for a family of two in your state.
  • You are working full-time and the total amount of your monthly payments (at a 10 year repayment schedule) on all your federal education loan payments is equal to or greater than 20% of your monthly income, and that income, minus your total monthly payments on all of your federal education loans is less than 220% of the larger of the federal minimum wage rate or the poverty line income for a family of two in your state.
  • You are working full-time and earn no more than the larger of: (1) The federal minimum wage rate, or (2) The poverty line income for a family of two in your state. Poverty line income for a family of two in most states is $1,140.83 monthly or $13,689.96 annually. Note: Poverty line income is $1,312.50 monthly or $15,750 annually in Hawaii and $1,426.67 monthly or $17,120.04 annually in Alaska.

Contact your lender to apply. Do not stop making payments on your student loans until after you are notified that your deferment has been granted.

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 - UNEMPLOYMENT DEFERMENT -  

Postpones eligible Federal Loan payments for up to 6 months at a time, up to 36 months*. Borrower must reapply every six months.

To qualify you must meet one of the following criteria.

  • You can document eligibility for unemployment benefits.
  • You can document that you are diligently seeking but are unable to find full-time employment (defined as working at least 30 hours per week in a position expected to last at least three months) in any field or at any salary or responsibility level and you have registered with a public or private employment agency if there is one within a 50-mile radius of your current address (NOTE: School placement offices and "temporary" agencies do not qualify as public or private employment agencies).
  • If you are requesting an extension of a current unemployment deferment and you do not provide documentation of eligibility for unemployment benefits, you must document that you are unable to find full-time employment, you have registered with a public or private employment agency if there is one within a 50-mile radius of your current address AND you must certify that you have made at least six diligent attempts to find full-time employment during the most recent six months.

*For borrowers whose first loans were made before July 1, 1993, the maximum cumulative eligibility is 24 months. For borrowers whose first loans were made on or after July 1, 1993, the maximum cumulative eligibility is 36 months.

Contact your lender to apply. Do not stop making payments on your student loans until after you are notified that your deferment has been granted.

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- MILITARY DEFERMENT - 

Postpones eligible Federal Loan payments while called to duty, up to 36 months.

To qualify all of your outstanding Federal loans must have been disbursed on or after July 1, 2001 and you must meet one of the following criteria.

  • You are serving on Active Duty as defined in 10 U.S.C. 101(d)(1), but does not include training or attendance at a service school.
  • You are performing qualifying National Guard Duty during a war, or other military operations as defined in 10 U.S.C. 101(a)(13), or national emergency.

Contact your lender to apply. Do not stop making payments on your student loans until after you are notified that your deferment has been granted.

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 - DISCRETIONARY FORBEARANCE - 

Available, at the lenders discretion, to borrowers who intend to repay their Federal and Private Loan(s) but show that they are experiencing financial difficulties at the present time, and who do not qualify for the Economic Hardship Deferment.

This forbearance is also available to Graduate PLUS Loan borrowers who wish to have their first payment aligned with the first payment of their Stafford loans. It is granted for a six month period (at the lender's discretion), following the separation date.

Contact your lender to apply. Do not stop making payments on your student loans until after you are notified that your deferment has been granted.



- ADMINISTRATIVE FORBEARANCE - 

Available, at the lenders discretion, to borrowers who intend to repay their Federal and Private Loan(s) but are experiencing a financial hardship due to one of the following situations.

  • Military Mobilization
  • Death
  • Designated Disaster Area
  • Participation in the Teacher Loan Forgiveness

Contact your lender to apply. Do not stop making payments on your student loans until after you are notified that your deferment has been granted.

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- MANDATORY FORBEARANCE - 

Available, at the lenders discretion, to borrowers who meet one of the following criteria.

  • National Service
  • Debt Exceeds Monthly Income
  • Participation in the Child Care Providers Loan Forgiveness
  • Participation in the Department of Defense Student Loan Repayment Programs
  • Participation in the Teacher Loan Forgiveness

Contact your lender to apply. Do not stop making payments on your student loans until after you are notified that your deferment has been granted.

 

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