Form Mil - Deferment Request (Page 2 of 3) in pdf

SECTION 5: INSTRUCTIONS FOR COMPLETING THE FORM

n Type or print using dark ink. Enter dates as month-day-year (mm-dd-yyyy). Use only numbers. Example: January 31, 2010 = 01-31-2010. If you need help completing

this form, contact your loan holder. If you are applying for a deferment of loans that are held by different loan holders, you must submit a separate deferment request to

each loan holder.

n To establish your eligibility, an authorized official must complete Section 4, or a copy of your military orders or a written statement from your commanding or personnel

officer must be attached.

n Return the completed form and any required documentation to the address shown in Section 8.

SECTION 6: DEFINITIONS

For the Military Service Deferment only:

• Active duty means full-time duty in the active military service of the United States as defined in 10 U.S.C. 101(d)(1), but does not include training or attendance at a

service school.

• Serving on active duty during a war or other military operation or national emergency means service by an individual who is (1) a Reserve of an Armed Force ordered to

active duty under 10 U.S.C. 12301(a), 12301(g), 12302, 12304, or 12306; or (2) a retired member of an Armed Force ordered to active duty under 10 U.S.C. 688 for service in

connection with a war or other military operation or national emergency, regardless of the location at which the active duty service is performed; or (3) any other member of an

Armed Force on active duty in connection with the emergency or subsequent actions or conditions who has been assigned to a duty station at a location other than the location

where the member is normally assigned.

• Military operation means a contingency operation as defined in 10 U.S.C. 101(a)(13). A contingency operation is a military operation that (1) is designated by the U.S. Secretary

of Defense as an operation in which members of the Armed Forces are or may become involved in military actions, operations, or hostilities against an enemy of the U.S. or

against an opposing military force; or (2) results in the call or order to, or retention on, active duty of members of the uniformed services under 10 U.S.C. 688, 12301(a), 12302,

12304, 12305, or 12406; 10 U.S.C. Chapter 15; or any other provision of law during a war or during a national emergency declared by the President or Congress.

• National emergency means the national emergency by reason of certain terrorist attacks declared by the President on September 14, 2001, or subsequent national emergencies

declared by the President by reason of terrorist attacks.

• Qualifying National Guard duty during a war or other operation or national emergency means training or other duty, other than inactive, performed by a member of the National

Guard on full-time National Guard duty, as defined in 10 U.S.C. 101(d)(5), under a call to active service authorized by the President or the Secretary of Defense. The training or

other duty must be performed for more than 30 consecutive days under 32 U.S.C. 502(f) in connection with a war, other military operation, or national emergency as declared by

the President and supported by federal funds.

For the Post-Active Duty Student Deferment only:

• For a Reserve or retired member of an Armed Force, active duty means full-time duty in the active military service of the United States as defined in 10 U.S.C. 101(d)(1) for at

least 30 consecutive days of service, but does not include training or attendance at a service school.

• For a member of the National Guard, active duty means (1) active state duty under which a governor activates National Guard personnel based on state law or policy and the

activities of the National Guard are paid for with state funds; and (2) full-time National Guard duty under which a governor is authorized, with the approval of the President or the

U.S. Secretary of Defense, to order a member to state active duty and the activities of the National Guard are paid for with federal funds. Active duty for this deferment does not

include (1) active duty for training or attendance at a service school, or (2) employment in a full-time, permanent position in the National Guard unless you are reassigned to active

state duty or full-time National Guard duty as described in (1) and (2) of the preceding sentence.

An authorized certifying official is my commanding or personnel officer.

Capitalization is the addition of unpaid interest to the principal balance of my FFEL or Direct Loan program loan. The principal balance of a loan increases when payments are

postponed during deferment/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 provides estimates, for a $15,000 loan balance at a 9% interest rate, of the monthly payments due following a 12-month

deferment/forbearance. It compares the effects of paying interest, capitalizing interest at the end of a deferment/forbearance, and capitalizing interest quarterly and at the end of

a deferment/forbearance. Your actual loan interest cost will depend on your interest rate, length of any deferment/forbearance, frequency of capitalization, and whether interest is

payable by the federal government. Paying interest during the period of deferment lowers the monthly payment by about $18 a month or about $772 over the life of the loan, as

depicted in the chart below.

Treatment of Interest Accrued

Loan

Capitalized Interest

Principal to Be

Monthly

Number of

Total Amount

Total Interest

During Deferment

Amount

for 12 Months

Repaid

Payment

Payments

Repaid

Paid

Interest is paid

$15,000.00

$0.00

$15,000.00

$190.01

120

$24,151.64*

$9,151.64

Interest is capitalized at the end of deferment

$15,000.00

$1,350.00

$16,350.00

$207.11

120

$24,853.79

$9,853.79

Interest is capitalized quarterly during deferment

$15,000.00

$1,396.25

$16,396.25

$207.70

120

$24,924.09

$9,924.09

and at the end of deferment

*Total amount repaid includes $1,350 of interest paid during the 12-month period of deferment.

A deferment is a period during which I am entitled to postpone repayment of the principal balance of my loan(s). Interest is not charged during a deferment on subsidized FFEL

or Direct Loan program loans, or on Perkins Loan Program loans. Interest is charged during a deferment on unsubsidized FFEL and Direct Loan program loans, unless I qualify

for the no interest accrual benefit for active duty service members (see Section 7). Note: Interest is not charged on a Federal Consolidation Loan during a deferment only if (1) the

application for the Consolidation Loan was received by my loan holder on or after January 1, 1993, but before August 10, 1993; (2) the application was received by my 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 my loan holder on or after November 13, 1997, in which case interest is not charged on the portion of the Federal Consolidation Loan that paid a subsidized FFEL or

Direct Loan program loan.

The Federal Family Education Loan (FFEL) Program includes Federal Stafford Loans (both subsidized and unsubsidized), Federal PLUS Loans, Federal Consolidation Loans, and

Federal Supplemental Loans for Students (SLS). Note: SLS loans are no longer made under this program, but the deferments covered on this form are available to borrowers with

SLS loans that are still in repayment.

The Federal Perkins Loan (Perkins Loan) Program includes Federal Perkins Loans, National Direct Student Loans (NDSL), and National Defense Student Loans (Defense Loans).

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.

Forbearance means permitting the temporary cessation of payments, allowing an extension of time for making payments, or temporarily accepting smaller payments than

scheduled. I am responsible for paying the interest that accrues on my loan(s) during a forbearance. If I do not pay the interest that accrues on a FFEL or Direct Loan program loan

during forbearance, it may be capitalized. Unpaid interest that accrues on a Perkins Loan Program loan during a forbearance is not capitalized.

The holder of my FFEL Program loan(s) may be a lender, guaranty agency, secondary market, or the U.S. Department of Education (the Department). The holder of my Direct Loan

Program loan(s) is the Department. The holder of my Perkins Loan Program loan(s) may be a school or the Department.

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