Economic Hardship
You must have all of your outstanding Federal Family Education Loan (FFEL) Program loans made on or after July 1, 1993, and when your first FFEL Program loan was made on or after July 1, 1993, you had no outstanding FFEL Program loans that were made before July 1, 1993.
Maximum Time Limit: 3 years
Eligibility Criteria
Effective October 1, 2007, the definition used for determining economic hardship deferment changed due
to the College Cost Reduction and Access Act (CCRAA). In addition, the current Economic Hardship Deferment
Request form does not reflect the 2008 Poverty Line Guidelines or the Federal Minimum Wage Rate
increase.
You may be eligible for this deferment if you meet at least one of the following qualifications:
You have been granted an economic hardship deferment under the Federal Direct Loan Program or Federal Perkins Loan Program for the same period of time that you are requesting deferment on your FFELP loan. You must provide proof of the deferment received.
You are receiving some type of state or federal assistance such as Food Stamps, Temporary Assistance for Needy Families (TANF), or Supplemental Security Income (SSI). You must provide proof of this assistance by sending in either a copy of your award letter or a letter from your caseworker.
You are currently or will be serving as a Peace Corps volunteer. You must attach documentation showing your period of service in the Peace Corps.
You are working full-time and have a gross monthly income that isnt more than $1,300 for a family of one. To calculate the poverty line for a family size greater than one, add $450 for each additional family member within your household. (Note the monthly income amount is for the 48 contiguous states and the District of Columbia). You must provide proof of your gross monthly income by sending copies of your pay stub(s) for the most recent complete month.
You are not working full-time and are not registered with an employment agency. You must provide a handwritten, signed and dated letter stating that you are currently unemployed and not earning income. This is called a self-certifying letter and will be used as verification of your unemployed status.
Additional information on eligibility and documentation requirements are found on the deferment form.
To process your request for an economic hardship deferment, your lender must receive the required documentation to verify your eligibility. We encourage you to make a copy of the form and notify your lender or loan servicer that you submitted the request. You should also contact your lender or loan servicer approximately two to three weeks after mailing the completed form to verify that it has been received and processed.
Deferment Form Instructions
Download a copy of the Economic Hardship Deferment Request Form