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DEFERMENTS are available for the following reasons: |
| Continuing Study - If you are continuing full/part-time, graduate, internship or residency study at an approved school, you may be eligible to defer the repayment of your loan. |
| Unemployment - Allows you to defer repayment of student loans for a maximum cumulative period of 24 months, or 36 months if the disbursement was on or after July 1, 1993. |
| Economic Hardship - Allows you to defer repayment of student loans for a maximum cumulative period of 36 months if you meet specific guidelines for economic hardship. |
| **You may be eligible for other deferments. Check with your lender for further details. |
| FORBEARANCE is possible by contacting your lender to make a forbearance arrangement. To apply, you must demonstrate that you are willing, but unable to make payments because of financial hardship. If the holder of your loan agrees, you may be allowed a temporary period during which no payments are due, (except interest payments which may be capitalized into your balance with lender approval), or you may be permitted to make lower-than-usual payments. Some types of forbearance are: |
| Discretionary - which allows the lender to assist a borrower in fulfilling the repayment obligations of the loan and to help prevent default. |
| Administrative - a signed forbearance agreement is not required before the lender grants an administrative forbearance. Some cases could include bankruptcy filing, total and permanent disability, death, delinquency before a deferment, closed school or false certification, and/or loan sale or transfer. |
| Mandatory - would require a lender to grant a forbearance for the following situations: |
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- Internship or Residency
- Debt exceeds monthly income
- National Service, Loan Forgiveness, or Department of Defense Repayment.
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| Mandatory Administrative - requires a lender to grant a mandatory administrative forbearance without the written request of the borrower. This forbearance must be granted until the Department of Education, or the guarantor notifies the lender that the forbearance period no long applies. Such instances would be: |
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- Local or National Emergency
- Military Mobilization
- Disasters
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