Bye Bye deferment

[lucas]

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I just found out with the new uber-low interest rate, I wont be elegiable for the economic hardship deferment. Make sure you check your calculations everyone! I was $100 dollars over the minimum. Ah crap!

 

[pinbor1]

I too got screwed out of my deferment. I had gotten a scholarship for one year of med school so I took out less in loans. I was never told about deferment requirements until graduation. I ended up missing the economic hardship requirements. The crappy thing is that now I have to payback my loans and also pay a mortgage. If I had been told this ahead of time, I would have taken out the loans so I would have a downpayment for a house and my loans would stay in deferral.

I also recommend that everyone check your numbers to make sure you qualify for deferal after all is said and done.

 

[Ratty]

The economic hardship deferral formula is pretty crappy. However, if you find yourself just under the cut-off, there are ways to still get economic hardship deferral - depending on who you consolidated with. For instance, I consolidated last year with the US Dept of Ed. They told me that if for some reason I didn't make the cut-off in a given year, I could present them with other statements (private loans, mortgage, etc.) that they would then take into account to grant deferral. They seemed pretty flexible about it. You might want to check directly with your consolidator for more info.

 

[Annette]

I didn't read the fine print about having to start a residency within 9 months of leaving school or else losing the right to defer during residency. $1,ooo/mo. mistake. OUCH!

 

[lucas]

Thanks Ratty. I was using Sallie Mae, and they wont budge on beniding the rules to allow me a deferment. If the numbers dont crunch, they dont care. Forget Sallie Mae all together for anthing,consolidation or otherwise!

pinbor1 - I feel your pain my brother!
Annette - wha?

 

[jashanley]

if you can't defer, forbear. You don't pay off the principal, but atleast you have much lower monthly payments. There is an automatic medical residency forbearance for up to 3 years ( I believe it is three) Then you can apply for forbearance because of economic hardship.
My best advice is that the new interns need to remember that on your taxes you can deduct for a lifetime learning credit of up to $1000, because you paid tuition for a degree within the tax year. It saved my fiance and I over $1400, which is a lot of money that the government doesn't need, but we did.

 

[Pureride]

Shouldnt deferment be done 6 months from now (toward the end of grace)?

If we consolidate now, do we also have to defer now?

-Abe Lincoln

 

[lucas]

You knowPureride, its like my Greek Landlord George Polychronopolis used to say: "You shovel enough **** in life, look behind you, you have a pile of **** that you can climb to the stars!"

 

[Pureride]

Is that the same one that used to BBQ fish dogs on the grill?

 

[lucas]

More words of wisdom from Mr Polychronopolis for Pureride:

People are like cheeses, some cheese round, some cheese square. Round cheese roll off the table, get eaten by mices. But the square cheese, she stays on table and never eaten by mices. So be like the sqaure cheese my friend!

(And yes, he was the landlord who caught sunfish and grilled them on the Webber gas grill. Sparky will never forgive me for making him eat one)

 

[Pureride]

Another perfectly good post down the drain.
Did you pay your Bezeq bill yet?

 

[Brewster]

Economic hardship deferment is limited to three years. You can forbear as long as you are a resident. Either way, you do not have to make monthly payments, the only difference is you accrue more interest in forbearance.

As far as Sallie Mae not budging, they are constrained by the federal law governing Stafford loans. It is illegal for them to budge on things like elligibility for economic hardship.

 

[jon_jon]

Does anyone know what the formula is to determine if you qualify for deferment?

Is there a website that lets you plug in the numbers to find out or do you have to contact your FA office to find out?

 

[smackdaddy]

you can get the info you need at your fa office. they can work out the #'s for you, including how much you can make moonlighting before you lose your hardship deferment.

and it may be possible to get the economic hardship deferment for 6 years if you don't consolidate all your loans the first time. after 3 years are up consolidate the remaining loans and you (i believe) can reapply for the hardship deferment. of course you don't know where the interest rates will be in 3 years.