In-School Deferment Request Form (Page 3 of 4) in pdf

SECTION 5: INSTRUCTIONS FOR COMPLETING THE DEFERMENT REQUEST

Type or print using dark ink. Enter dates as month-day-year (mm-dd-yyyy). Example: March 14, 2015 = 03-14-2015. Include

your name and account number on any documentation that you are required to submit with this form. 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 6: DEFINITIONS

An authorized official who may complete Section 4 is

The Federal Perkins Loan (Perkins Loan) Program

an official of the school were you are/were enrolled.

includes Federal Perkins Loans, National Direct Student Loans

(NDSL), and National Defense Student Loans (Defense Loans).

Capitalization is the addition of unpaid interest to the

The holder of your Direct Loans is the Department. The

principal balance of your loan. Capitalization causes more

interest to accrue over the life of your loan and may cause

holder of your FFEL Program loans may be a lender, guaranty

your monthly payment amount to increase. Interest never

agency, secondary market, or the Department. The holder of

capitalizes on Perkins Loans. Table 1 (below) provides an

your Perkins Loans is an institution of higher education or the

example of the monthly payments and the total amount

Department. Your loan holder may use a servicer to handle

repaid for a $30,000 unsubsidized loan. The example loan

billing and other communications related to your loans.

has a 6% interest rate and the example deferment or

References to “your loan holder” on this form mean either

forbearance lasts for 12 months and begins when the loan

your loan holder or your servicer.

entered repayment. The example compares the effects of

A regular student is a person who is enrolled or accepted

paying the interest as it accrues or allowing it to capitalize.

for enrollment at an institution for the purpose of obtaining a

A deferment is a period during which you are entitled

degree, certificate, or other recognized educational credential

to postpone repayment of your loans. Interest is not

offered by the institution.

generally charged to you during a deferment on your

A subsidized loan is a Direct Subsidized Loan, a Direct

subsidized loans. Interest is always charged to you during a

Subsidized Consolidation Loan, a Federal Subsidized Stafford

deferment on your unsubsidized loans. On loans made

Loan, portions of some Federal Consolidation Loans, Federal

under the Perkins Loan Program, all deferments are

Perkins Loans, NDSL, and Defense Loans.

followed by a post-deferment grace period of 6 months,

An unsubsidized loan is a Direct Unsubsidized Loan, a

during which time you are not required to make payments.

Direct Unsubsidized Consolidation Loan, a Direct PLUS Loan, a

An eligible school is a school that has been approved

Federal Unsubsidized Stafford Loan, a Federal PLUS Loan, a

by the Department to participate in the Department's

Federal SLS, and portions of some Federal Consolidation

Federal Student Aid programs, even if the school does not

Loans.

participate in those programs.

The William D. Ford Federal Direct Loan (Direct Loan)

The Federal Family Education Loan (FFEL) Program

Program includes Federal Direct Stafford/Ford (Direct

includes Federal Stafford Loans, Federal PLUS Loans, Federal

Subsidized) Loans, Federal Direct Unsubsidized Stafford/Ford

Consolidation Loans, and Federal Supplemental Loans for

(Direct Unsubsidized) Loans, Federal Direct PLUS (Direct PLUS)

Students (SLS).

Loans, and Federal Direct Consolidation (Direct Consolidation)

Loans.

Table 1. Capitalization Chart

Treatment of Interest with

Capitalized

Outstanding

Monthly

Number of

Loan Amt.

Total Repaid

Deferment/Forbearance

Interest

Principal

Payment

Payments

Interest is paid

$30,000

$333

120

$41,767

Interest is capitalized at the

$30,000

$1,800

$31,800

$353

120

$42,365

end

Interest is capitalized

$30,000

$1,841

$31,841

$354

120

$42,420

quarterly and at the end

SECTION 7: WHERE TO SEND THE COMPLETED DEFERMENT REQUEST

Return the completed form and any documentation to:

If you need help completing this form, call:

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

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

ACS Education Services

Campus Products and Services

800-826-4470

P.O. Box 7060

Utica, NY 13504-7060

Page 3 of 4

In-School Deferment Request Form Page 3

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