Fillable Parent Plus Borrower Deferment Request (Page 3 of 4) in pdf

SECTION 6: DEFINITIONS

An authorized official who may complete Section 4 is

The Federal Family Education Loan (FFEL) Program

an official of the school where the student is/was enrolled.

includes Federal Stafford Loans, Federal PLUS Loans, Federal

Consolidation Loans, and Federal Supplemental Loans for

Capitalization is the addition of unpaid interest to the

Students (SLS).

principal balance of your loan. Capitalization causes more

The holder of your Direct Loans is the Department. The

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

holder of your FFEL Program loans may be a lender,

your monthly payment amount to increase. Table 1 (below)

guaranty agency, secondary market, or the Department.

provides an example of the monthly payments and the total

Your loan holder may use a servicer to handle billing and

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

other communications related to your loans. References to

example loan has a 6% interest rate and the example

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

deferment or forbearance lasts for 12 months and begins

holder or your servicer.

when the loan entered repayment. The example compares

A subsidized loan is a Direct Subsidized Loan, a Direct

the effects of paying the interest as it accrues or allowing it

to capitalize.

Subsidized Consolidation Loan, a Federal Subsidized

Stafford Loan, and portions of some Federal Consolidation

A deferment is a period during which you are entitled

Loans.

to postpone repayment of your loans. Interest is not

An unsubsidized loan is a Direct Unsubsidized Loan, a

generally charged to you during a deferment on your

subsidized loans. Interest is always charged to you during a

Direct Unsubsidized Consolidation Loan, a Direct PLUS

deferment on your unsubsidized loans.

Loan, a Federal Unsubsidized Stafford Loan, a Federal PLUS

Loan, a Federal SLS, and portions of some Federal

A dependent student is a student who: (1) is under 24

Consolidation Loans.

years of age by December 31 of the award year (July 1

through June 30) in which the student is enrolled; (2) is not

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

an orphan or ward of the court; (3) is not a veteran of the

Program includes Federal Direct Stafford/Ford (Direct

armed forces of the United States; (4) is not a graduate or

Subsidized) Loans, Federal Direct Unsubsidized Stafford/

professional student; (5) is not married; (6) has no legal

Ford (Direct Unsubsidized) Loans, Federal Direct PLUS

dependents; and (7) has not been classified as independent

(Direct PLUS) Loans, and Federal Direct Consolidation

by a financial aid administrator due to other unusual

(Direct Consolidation) Loans.

circumstances.

An eligible school is a school that has been approved

by the Department to participate in the Department's

Federal Student Aid programs, even if the school does not

participate in those programs.

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.)

Page 3 of 4

Parent Plus Borrower Deferment Request Page 3

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