Filling out that loan deferment form

[kaos]

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What do you guys typically mark as reasons for deferment eligibility when filling out those pesky forms? The below-minimum wage pay or having to make payments that take up more than 20% of your income?

 

[blanche]

payments greater than 20% of (pretax) monthly income. i didn't consider the below minimum wage thing.

depressing, i wonder what my hourly wage will be factoring in an 70-80 hour work week....i don't think i want to know, sob.

 

[kaos]

depressing, i wonder what my hourly wage will be factoring in an 70-80 hour work week....i don't think i want to know, sob.

Exactly my point. I'm guessing we technically could qualify for minimum wage. 👍

 

[dpmd]

It's not based on hourly wage. It's based on gross monthly earnings, and I think most residents are above the cutoff.

 

[mshheaddoc]

What do you guys typically mark as reasons for deferment eligibility when filling out those pesky forms? The below-minimum wage pay or having to make payments that take up more than 20% of your income?

You mark more than 20% and you can see if you qualify by reading the calculations I posted in the residency forum.

 

[hyper_74]

Other questions on the economic hardship deferment form:

1) as a soon-to-be-graduating student, are we supposed to check the box for working full-time, since we will be working full-time soon.

2) for attaching documentation for monthly income, what do I attach? since I haven't started residency and have no current income, I wasn't sure what they actually needed from me.

3) When do these forms need to be in for deferment? There is a Student Aid Commision coming to my school to give an info session the day before commencement and will probably answer everything then, but I was worried that I need to have these forms filled out before then.

I've tried emailing financial aid at my school, but they were less then helpful.
Thanks

 

[dpmd]

I don't think you can file the paperwork while you are still in an in-school status. If you are like most students, you will have a grace period after you graduate (interest doesn't accrue on subsidized loans, variable interest rate loans stay at the lower in school rate) that will last long enough for you to actually be in residency and have a paycheck. Once you have the paycheck stub you can file the paperwork without difficulty. It is good that you want to be proactive about this, but you are jumping the gun by quite a bit. The stafford loans have a 6 month grace period, while the perkins have a 9 month grace.

Do be careful though, because they will send you paperwork showing you first payment's due date which is after the end of the grace period. You want to have your paperwork in before that (not too much before so you take full advantage of your grace period) to maximize your interest savings. Just look at a calendar and calculate 6 months from your graduation date (another potential problem-your school may report one date, then change it later and end up causing problems). Apply for the deferment a couple of weeks before that (it took about three days for mine to go through, but your lender may be different and there might be busy times). This should be around November for May graduates.

 

[hyper_74]

I don't think you can file the paperwork while you are still in an in-school status. If you are like most students, you will have a grace period after you graduate (interest doesn't accrue on subsidized loans, variable interest rate loans stay at the lower in school rate) that will last long enough for you to actually be in residency and have a paycheck. Once you have the paycheck stub you can file the paperwork without difficulty. It is good that you want to be proactive about this, but you are jumping the gun by quite a bit. The stafford loans have a 6 month grace period, while the perkins have a 9 month grace.

Do be careful though, because they will send you paperwork showing you first payment's due date which is after the end of the grace period. You want to have your paperwork in before that (not too much before so you take full advantage of your grace period) to maximize your interest savings. Just look at a calendar and calculate 6 months from your graduation date (another potential problem-your school may report one date, then change it later and end up causing problems). Apply for the deferment a couple of weeks before that (it took about three days for mine to go through, but your lender may be different and there might be busy times). This should be around November for May graduates.

-----------------------------

Thanks for the info, Since I consolidated my loans, I gave up my grace period. My loans go into repayment 5/27/07 (day after graduation) with my first payment scheduled to be due 6/27/07. So I should probably wait till right after graduation when my "in-school" deferment ends, then I could apply for Economic Hardship right after that to make sure the paperwork is in a few weeks before my first payment is supposed to be due. Does this sound right?
Thanks

 

[dpmd]

Yes, but you might run into trouble with the income part. Although if you filed a 1040 this year you could use that. Either that or just suck it up and pay a few payments-maybe starbucks is hiring.

 

[southerndoc]

I don't think you can file the paperwork while you are still in an in-school status. If you are like most students, you will have a grace period after you graduate (interest doesn't accrue on subsidized loans, variable interest rate loans stay at the lower in school rate) that will last long enough for you to actually be in residency and have a paycheck. Once you have the paycheck stub you can file the paperwork without difficulty. It is good that you want to be proactive about this, but you are jumping the gun by quite a bit. The stafford loans have a 6 month grace period, while the perkins have a 9 month grace.

Do be careful though, because they will send you paperwork showing you first payment's due date which is after the end of the grace period. You want to have your paperwork in before that (not too much before so you take full advantage of your grace period) to maximize your interest savings. Just look at a calendar and calculate 6 months from your graduation date (another potential problem-your school may report one date, then change it later and end up causing problems). Apply for the deferment a couple of weeks before that (it took about three days for mine to go through, but your lender may be different and there might be busy times). This should be around November for May graduates.

-----------------------------

Thanks for the info, Since I consolidated my loans, I gave up my grace period. My loans go into repayment 5/27/07 (day after graduation) with my first payment scheduled to be due 6/27/07. So I should probably wait till right after graduation when my "in-school" deferment ends, then I could apply for Economic Hardship right after that to make sure the paperwork is in a few weeks before my first payment is supposed to be due. Does this sound right?
Thanks

Then yes, you must consolidate BEFORE graduating. You need to get this in motion and approved AS SOON AS POSSIBLE.

Since you do not have a grace period, if your loans enter into repayment before your consolidation goes through, then you will consolidate with the higher repayment interest rate (I think it's .5% higher?).

 

[hyper_74]

Then yes, you must consolidate BEFORE graduating. You need to get this in motion and approved AS SOON AS POSSIBLE.

Since you do not have a grace period, if your loans enter into repayment before your consolidation goes through, then you will consolidate with the higher repayment interest rate (I think it's .5% higher?).

Did you mean deferment instead of consolidate? I consolidated 1 year ago, so I don't need to worry about doing that.

Thanks

 

[edubbs5]

Other questions on the economic hardship deferment form:

1) as a soon-to-be-graduating student, are we supposed to check the box for working full-time, since we will be working full-time soon.

2) for attaching documentation for monthly income, what do I attach? since I haven't started residency and have no current income, I wasn't sure what they actually needed from me.

3) When do these forms need to be in for deferment? There is a Student Aid Commision coming to my school to give an info session the day before commencement and will probably answer everything then, but I was worried that I need to have these forms filled out before then.

I've tried emailing financial aid at my school, but they were less then helpful.
Thanks

Answers to the hard questions:
Answer 1)
For Soon-to-be graduating students - I recommend checking box#5 - as you aren't a full-time employee YET -and the income information you would provide would testify to that.

Answer 2)
To proof income - contact your lender to clarify but rule of thumb is - you can use one of two things (and use whichever one makes you look the most broke) - either a)current pay stub or b)previous year's tax return. If you are like most and have neither of these - just state on your form that you were a full-time student and filed ZERO taxable income. This SHOULD qualify you for deferment.

Answer 3)
Deferment is critical and doing it before graduation is very important - especially if you have Consolidation or Grad Plus loans - as these loans will go immediately into repayment after graduation, and usually repayment also means "interest capitilization" - something you also want to avoid. I know with some lenders if you can avoid interest capitilization if you go seamlessly from in- school to deferment.


Other insider tips - if married - you don't have to submit your joint information - isince your student loans are only yours, you only have to submit information that has your name on it (i.e. W2 statement).

 

[jihu]

Answers to the hard questions:
Answer 1)
For Soon-to-be graduating students - I recommend checking box#5 - as you aren't a full-time employee YET -and the income information you would provide would testify to that.

This is a great point. I just called my lender and confirmed this with one of the reps. If you've consolidated and forfeited your grace period, you'll end up going into repayment BEFORE you're a full-time resident. So checking off Box #5 seems to be the simplest way to qualify for the economic hardship deferment requirements.