401K and deferrment

[golgi]

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Does putting money towards our 401K plan affect our deferrment eligibilty? If I put 14,000 of my salary (40,000) into a 401K, then would my new "salary" be considered 26,000? If so, my monthly income on which deferrment would be based on, would be roughly 2167. Or do they base it on your pretax income? I hope you can understand the question - sorry if it sounds a little confusing.

 

[turtle md]

From what I understand, the hardship deferment is based on pre-tax salary and amount of debt. No other considerations are made. Forbearance is a different matter, and should not be based on money issues, only on being in a residency program.

 

[cabby]

Does putting money towards our 401K plan affect our deferrment eligibilty? If I put 14,000 of my salary (40,000) into a 401K, then would my new "salary" be considered 26,000? If so, my monthly income on which deferrment would be based on, would be roughly 2167. Or do they base it on your pretax income? I hope you can understand the question - sorry if it sounds a little confusing.

I am not 100% sure about this but when I looked into this contributions to a 401K reduce your pre-tax income and therefore should in effect 'reduce' your income for deferment purposes.

I believe this is one of the methods Graduate Leverage uses to increase the chances of being granted econ hardship deferment.

MG

 

[GeneGoddess]

I heard the same thing as Cabby/MG.