Economic Hardship Deferment - University Of Hawaii Maui College (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 payments 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 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

$15,000.00

$1,048.51

$16,048.51

$184.69

120

$22,162.41

$7,156.10

deferment 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).

 Family size is determined by counting (1) yourself, (2) your spouse, (3) your children, including unborn children who will be born during the period covered by the deferment, if they

receive more than half of their support from you, and (4) other people if, at the time you request this deferment, they live with you, receive more than half their support from you,

and will continue to receive this support from you for the year that you certify your family size. Support includes money, gifts, loans, housing, food, clothes, car, medical and dental

care, and payment of college costs.

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

Students (SLS).

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

Loans).

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

Department.

 Monthly income is either: (1) The amount of your monthly income from employment and other sources before taxes and other deductions; or (2) One-twelfth of the “adjusted gross

income” on your most recently filed Federal Income Tax Return.

You may choose either of these income amounts for the purpose of reporting your monthly income on this deferment request.

 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

 You may defer repayment of your loan(s) during the period that you meet one of the Economic Hardship Deferment conditions described in Section 2.



For Direct Loan Program borrowers: All borrowers are eligible.



For FFEL Program borrowers: Only if all of your FFEL Program loans were first disbursed on or after July 1, 1993, or if you had no balance on a FFEL Program loan that

was first disbursed before July 1, 1993 when you obtained a loan on or after July 1, 1993.

 For Condition (1), you must provide your loan holder with documentation of the deferment, which includes and end dates, that has been granted under the FFEL, Direct, or the

Federal Perkins Loan Program (for example, correspondence from your loan holder showing that you have been granted a deferment).

 For Condition (2), you must provide your loan holder with documentation confirming that you are receiving or received payments under a federal or state public assistance

program that support the period for which you are requesting this deferment.

 For Condition (3), you must provide your loan holder with documentation which certifies the beginning and expected ending dates of your service in the Peace Corps and which is

signed and dated by an authorized Peace Corps official.

 For Condition (4), you must:



Provide your loan holder with documentation of your monthly income as defined in Section 5. If you are reporting monthly income from employment and other sources, you

must provide documentation such as pay stubs that support the period of this deferment request. If you are reporting one-twelfth of your adjusted gross income, you must

provide a copy of your most recently filed Federal Income Tax Return.



Use the applicable amount based on your family size and state as shown in the chart below. If you are not currently residing in the United States, you will use the amount for

the 48 contiguous states and the District of Columbia. The chart below is derived from the HHS Poverty Guidelines, which are updated annually in the Federal Register and

online at

These are monthly figures that represent 150% of the Poverty Line for 2013

Borrower’s Family Size

48 Contiguous States

(See definition in Section 5)

Alaska

Hawaii

and District of Columbia

$1,436.25

$1,793.75

$1,653.75

$1,938.75