economic hardship deferment

[RedBlue04]

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Question about the economic hardship deferment.
Every calculator I use online says I qualify. But when I use the form provided by the dept. of education, it doesn't quite work out. There seems to be an issue with the poverty level. Is this povery level value in the form what is used for a 1 person household? This is the only thing that seems to be confounding everything....
Just wondering if anyone else was having this issue?

Thanks

 

[mshheaddoc]

Are you calculating using your loan payment at a 10 year repayment? The poverty level threshold I believe is 220% above poverty level. If you need help, PM me.

 

[dragonfly99]

Agree with the above post. When calculating, you are allowed to use the payment you'd be paying if you were paying off your loans over 10 years...even if you are really going to consolidate and pay 30 year payments.
That might be the problem in your calculations?

 

[RedBlue04]

Is there anything we can do to help save the economic hardship deferment program, even though the rules theoretically have been accepted?
Thanks!

 

[mshheaddoc]

Contact your representative, this issue STILL has not died!!!

 

[agdoc04]

Do you use a spouses income in the calculations? And if you do, can you use their loans as well?

 

[dragonfly99]

redblue
the AMA (and AMA med student and resident/fellow section) lobbied hard on this issue (probably AMSA also, though I have no personal knowledge), but it is a hard sell to Congress to convince them that we should get a "special deal", which is what the existing provision is. Basically, the new/changed economic hardship rules apply to all student borrowers (at least that is my understanding) who have federal loans. The congressmen's argument was basically that the overall student aid bill was a big improvement (because it capped the amount of interest lenders could charge students, etc.) and that they weren't getting rid of economic hardship, just changing the provisions of it. That is true - they changed it so that students will HAVE to pay something, rather than being able to defer everything. The silver lining in that is that people won't be able to let their loans just sit and sit and grow bigger and bigger, which could be a good thing for the borrowers long term...if they can afford to pay these small payments during residency. I think most residents can afford the payments, which I think based on a resident salary would turn out to be in the $300 per month range that you would actually have to pay.

I think you can still try to lobby our congressman on this issue, but you are unlikely to get anywhere.

 

[mshheaddoc]

Do you use a spouses income in the calculations? And if you do, can you use their loans as well?

No, I would not include spouses loans/income to meet this requirement.