Fillable Unemployment Deferment Request - Osla (Page 2 of 3) in pdf

SECTION 4: INSTRUCTIONS FOR COMPLETING THE FORM

Type or print using dark ink. Enter dates as month-day-year (mm-dd-yyyy). Use only numbers. Example: January 31, 2012 = 01-31-2012. Include your name and account number on

any documentation that you are required to submit with this form.

If you need help completing this form, contact your loan holder. If you want to apply for a deferment on loans that are

held by different loan holders, you must submit a separate deferment request to each loan holder.

Return the completed form and any required documentation to the address shown in Section 7.

SECTION 5: DEFINITIONS

 Capitalization is the addition of unpaid interest to the principal balance of your loan. The principal balance of a loan increases when paym ents are postponed during periods of

deferment or forbearance and unpaid interest is capitalized. As a result, more interest may accrue over the life of the loan, the monthly payment amount may be higher, or more

payments may be required. The chart below provides estimates, for a $15,000 unsubsidized loan balance at a 6.8% interest rate, of the monthly payments due following a 12-

month deferment that started when the loan entered repayment. It compares the effects of paying the interest as it accrues, capitalizing the interest at the end of the deferment, and

capitalizing interest quarterly and at the end of the deferment. Please note that the U.S. Department of Education (the Department) and many other holders do not capitalize

interest on a quarterly basis. The actual loan interest cost will depend on your interest rate, length of the deferment, and frequency of capitalization. Paying interest during the

period of deferment lowers the monthly payment by about $12 and saves about $426 over the lifetime of the loan, as depicted in the chart below.

Treatment of Interest Accrued

Loan

Capitalized Interest

Principal to

Monthly

Number of

Total Amount

Total Interest

During Deferment

Amount

for 12 Months

Be Repaid

Payment

Payments

Repaid

Paid

Interest is paid

$15,000.00

$0.00

$15,000.00

$172.62

120

$21,736.55*

$6,730.66

Interest is capitalized at the end of deferment

$15,000.00

$1,022.09

$16,022.09

$184.38

120

$22,125.94

$7,119.64

Interest is capitalized quarterly during deferment

$15,000.00

$1,048.51

$16,048.51

$184.69

120

$22,162.41

$7,156.10

and at the end of deferment

*Total amount repaid includes $1,022.09 of interest paid during the 12-month period of deferment.

 A deferment is a period during which you are entitled to postpone repayment of the principal balance of your loan(s). Interest does not accrue during a deferment on a Direct

Subsidized Loan, a Direct Subsidized Consolidation Loan, a subsidized Federal Stafford Loan, or, in some cases, the subsidized portion of a Federal Consolidation Loan (see

Note). Interest does accrue during a deferment on a Direct Unsubsidized Loan, a Direct PLUS Loan, a Direct Unsubsidized Consolidation Loan, an unsubsidized Federal Stafford

Loan, a Federal PLUS Loan, or a Federal SLS Loan. Note: Interest does not accrue on a Federal Consolidation Loan during a deferment only if: (1) the application for the Federal

Consolidation Loan was received by your loan holder on or after January 1, 1993, but before August 10, 1993; (2) the application was received by your loan holder on or after

August 10, 1993, and the Federal Consolidation Loan includes only Federal Stafford Loans that were eligible for federal interest subsidy; or (3) the application was received by your

loan holder on or after November 13, 1997, in which case interest does not accrue on the portion of the Federal Consolidation Loan that paid a subsidized Direct Loan or FFEL

Program loan(s).

 The Federal Family Education Loan (FFEL) Program includes Federal Stafford Loans, Federal PLUS Loans, Federal Consolidation Loans, and Federal Supplemental Loans for

Students (SLS).

 A forbearance is a period during which you are permitted to temporarily postpone making payments, allowed an extension of time for making payments, or temporarily allowed to

make smaller payments than scheduled.

 Full-time employment is defined as working at least 30 hours per week in a position expected to last at least 3 consecutive months.

 The holder of your Direct Loan Program loan(s) is the the Department. The holder of your FFEL Program loan(s) may be a lender, guaranty agency, secondary market, or the

Department.

 The United States, for the purpose of this deferment, includes any state of the Union, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, the

Virgin Islands, the Commonwealth of the Northern Mariana Islands, the Freely Associated States (the Republic of the Marshall Islands, the Federated States of Micronesia, and the

Republic of Palau), and U.S. military bases and embassy compounds in foreign countries.

 The William D. Ford Federal Direct Loan (Direct Loan) Program includes Federal Direct Stafford/Ford (Direct Subsidized) Loans, Federal Direct Unsubsidized Stafford/Ford

(Direct Unsubsidized) Loans, Federal Direct PLUS (Direct PLUS) Loans, and Federal Direct Consolidation (Direct Consolidation) Loans.

SECTION 6: ELIGIBILITY REQUIREMENTS

 To qualify:

(1) You must be diligently seeking but unable to find full-time employment in the United States (as defined in Section 5) in any field or at any salary or responsibility level. You must

be registered with a public or private employment agency if there is one within 50 miles of my current address. Further, if you are requesting an extension of an existing

Unemployment Deferment, you must have made at least six diligent attempts to find full-time employment in the most recent 6 months. (Check box A in Section 2.)

NOTE: School placement offices and “temporary employment” agencies do not qualify as public or private employment agencies.

(2) You must be eligible for unemployment benefits, and attach documentation of your eligibility for these benefits. The documentation must include your name, address, and social

security number, and show that you are eligible to receive unemployment benefits during the period for which you are requesting deferment. (Check box B in Section 2.)

SECTION 7: WHERE TO SEND THE COMPLETED DEFERMENT REQUEST

Return the completed form and any required documentation to:

If you need help completing this form, call:

(If no address is shown, return to your loan holder.)

(If no telephone number is shown, call your loan holder.)

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