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Economic Hardship
To qualify for an Economic Hardship Deferment you must
meet one of the following criteria:
- You are serving as a Peace Corps volunteer
- You are receiving federal or state public assistance
- You have been granted an economic hardship deferment
under either the Federal Direct or Federal Perkins Loan
Program for the same period of time
- You are not working full-time and your monthly income
does not exceed the larger of two times the federal minimum
wage rate or two times the poverty line income for a
family of two in your state. To qualify under this criterion,
you must also document that after deducting your total
monthly payments on all of your federal education loans
from your monthly income, the remaining amount must not
exceed the larger of the federal minimum wage rate or
the poverty line income for a family of two in your state.
Note: If your repayment period is more than 10 years,
your total monthly federal education loan payments will
be adjusted to reflect a 10-year repayment period.
- You are working full-time and the total amount of your
monthly payments on all your federal education loan payments
is equal to or greater than 20% of your monthly income,
and that income, minus your total monthly payments on
all of your federal education loans is less than 220%
of the larger of the federal minimum wage rate or the
poverty line income for a family of two in your state.
Note: If your repayment period is more than 10 years,
your total monthly federal education loan payments will
be adjusted to reflect a 10-year repayment period.
- You are working full-time and earn no more than the
larger of:
- The federal minimum wage rate,
or
- The poverty line income for a family of two in your state. Poverty line income for a family of two in most states
is $1,140.83 monthly or $13,689.96 annually. Note: Poverty line income is $1,312.50 monthly or $15,750 annually in
Hawaii and $1,426.67 monthly or $17,120.04 annually in Alaska.
Use this form only if all of your outstanding Federal Family Education Loan Program loans
were made on or after July 1, 1993.
Download Economic Hardship Deferment Now
Updated: 07/15/2008
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