Economic

Economic Hardship Deferment

Economic Deferment Application (pdf)

Principal and interest will not accrue during an economic hardship deferment.

Eligibility for an economic hardship deferment is based on the following requirements:

  1. You must have full-time employment

  2. The combined monthly amount for your federal loan payments must exceed 20% of your monthly adjusted gross income or...

  3. Your gross income is below 150% of the poverty level applicable to your family size or...

  4. You have been granted an economic hardship deferment under either the FDSL or FFEL programs for the period of time for which you have requested an economic hardship deferment for your Federal Perkins/Perkins/National Direct/National Defense/University Long-Term Student loan(s) or...

  5. You are receiving payment under a federal or state public assistance program, such as Aid to Families with Dependent Children, Supplemental Security Income, Food Stamps, or state general public assistance.

Grace Period

Following an economic hardship deferment, you will receive an additional grace period of six months. Principal and interest will not accrue during the post deferment grace period and payments are not required.

Unemployment Deferment Former

Principal and interest will not accrue during an unemployment deferment.

You are eligible for an unemployment deferment if you are working part-time, but seeking full-time employment. Please note on your deferment application if you are seeking full-time employment.

Grace Period

Following an unemployment deferment, you will receive an additional grace period of six months. Principal and interest will not accrue during the post deferment grace period and payments are not required.

Forbearance

Interest will continue to accrue while your loan is in forbearance. You will receive monthly bills for the accrued interest. Although you are not required to pay the interest each month, we recommend you do so to avoid facing a high interest payment at the end of the forbearance period. Accrued interest cannot be capitalized. Definition of Capitalization of Interest: The interest amount is added to the principal. Future interest would be calculated on the new (increased) principal amount.

Grace Period

Following forbearance, there is no post forbearance grace period.

Applying for the above mentioned forbearances /deferments

The following method of application is used for all of the above-mentioned forbearance/deferments. You must:

  1. Print and submit an Economic Deferment Application.
    1. Include all of your income and expenses
    2. Sign and date the bottom of the application
    3. Add any information that may be relevant to our decision
    4. Provide supporting documentation for income and expenses listed on the application (e.g. pay stub, credit card statements, etc...)
    5. Return the application to: `

Student Financial Services
108 Shields Building
University Park, PA 16802
Fax Number: (814) 865-6535

Once your deferment is reviewed, we will determine which deferment best meets your needs and promptly send a letter notifying you of our decision.

If you do not receive a response from our office within thirty (30) days of mailing the deferment form, please contact us for assistance.