How do you get economic hardship deferment if you dont start residency for 3 wks

[bonovox]

Here's my issue: My consolidated loan got put into repayment beginning June since I graduated in May from med school. However, I do not begin residency until the end of this month. If I submit the EHD form, can I choose option #6 (income per month is too low to make monthly loan repayments), can I just submit my contract as proof of employment and salary? Or, do I apply for EHD on the basis that I am unemployed, then reapply for EHD in July when I get my paychecks?

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[MedGoatTX]

Apply now as unemployed. That will be the surest way to get the deferment, and if you're lucky, they may just give it to you for a whole year now. Even if it's just a month or two, that would buy you some time. But you should definitely apply now since you will have no income for a brief period.

 

[bonovox]

Apply now as unemployed. That will be the surest way to get the deferment, and if you're lucky, they may just give it to you for a whole year now. Even if it's just a month or two, that would buy you some time. But you should definitely apply now since you will have no income for a brief period.

Thanks. 🙂 I spoke to them about this, and they said to apply as unemployed and I will get the whole year deferred. 😀

 

[colbgw02]

What sort of loans do you have that you didn't get a 6 month grace period?

 

[minstral]

yeah i dont understand. we all have a grace period. i havent done any paper work on loans. AM I MISSING SOMETHING?

 

[bonovox]

What sort of loans do you have that you didn't get a 6 month grace period?

Federal consolidated loans have no grace period. My private loan and my unconsolidated Stafford loan are in grace.

 

[colbgw02]

Federal consolidated loans have no grace period. My private loan and my unconsolidated Stafford loan are in grace.

Mine did. They must have changed the rules.

 

[Blade28]

Yeah, I had a grace period as well (around 9 months IIRC).

 

[RasputinDO]

If you consolidated them while still in school, you had to waive your grace period on your separate loans in order to make them eligible for consolidation...so I'm assuming that was what this person did.

 

[Winged Scapula]

I would call them and ask them for an extended grace period. They will actually work with you, in my experience.

 

[RasputinDO]

I would call them and ask them for an extended grace period. They will actually work with you, in my experience.

This is true but a lot of loan companies are also doing a lot less of these things given the dramatic shift in the economy as well as all the alterations that have been made to the federal student loan program in the past few years.

 

[zinjanthropus]

Federal Consolidation loans do not have a grace period and since you will qualify for economic hardship deferment there is really no reason to try and have them give you a grace period. In addition, you waived your grace period if you consolidated while in school. Now, it's possible some of the folks who graduated before 2007 on here never got a chance to consolidate while in school and, thus, are unaware of the no-grace period situation.

It's easy to apply and receive the economic hardship deferment and you should do it immediately.

If you have Sallie Mae, it can all be done online and you will be approved within a day. Just go to http://www.manageyourloans.com and login. Then select "postpone payments" then "apply for economic hardship deferment". You income right now is 0 (unemployed). If they give it to you for the whole year, great. Otherwise, you will have to reapply once residency begins with that income data.

Now, for your other federal loans that are not consolidated, you will have a grace period until about October. At that point, you will apply for the deferment. Having said that, you should probably consolidate those loans as well AFTER July 1, 2008. The interest rates for 2008-2009 are going way down as follows:

Stafford goes from 6.62% --> 3.61% for in-school/grace/deferment and 7.22% --> 4.21% for forbearance/repayment.

You can only consolidate the loans that have not previously been consolidated and you have to wait until after July 1 to get the new rates.

 

[bonovox]

^ Yes, I've applied for economic hardship and they've put my consolidated loans into deferment.

I have three loans now:

Stafford loans --> Grace (6 mos)
Private loans --> Grace (42 mos!)
Consolidated --> Deferment (12 mos)

My loans are through THE Northstar, and their policy is interest is NOT capitalized until repayment!

Re: consolidating those Stafford loans, I will wait until end of May 2009 to see what the new interest rates for July 2009-June 20, 2010 will be. If they go lower, I do nothing. If they go higher, then I have 30 days to lock in the 2008-2009 interest rates.

My question is this: The Stafford loans in grace are a much smaller amount compared to my other loans. Once its grace period expires and the loan enters, I will be making a salary, and I will NOT qualify for economic hardship on those loans.

So, while I am still unemployed, can I also apply for economic hardship on the Stafford loans in grace, thus deferring payment on them for another 6 months??

 

[RasputinDO]

^ Yes, I've applied for economic hardship and they've put my consolidated loans into deferment.

I have three loans now:

Stafford loans --> Grace (6 mos)
Private loans --> Grace (42 mos!)
Consolidated --> Deferment (12 mos)

My loans are through THE Northstar, and their policy is interest is NOT capitalized until repayment!

Re: consolidating those Stafford loans, I will wait until end of May 2009 to see what the new interest rates for July 2009-June 20, 2010 will be. If they go lower, I do nothing. If they go higher, then I have 30 days to lock in the 2008-2009 interest rates.

My question is this: The Stafford loans in grace are a much smaller amount compared to my other loans. Once its grace period expires and the loan enters, I will be making a salary, and I will NOT qualify for economic hardship on those loans.

So, while I am still unemployed, can I also apply for economic hardship on the Stafford loans in grace, thus deferring payment on them for another 6 months??

Most companies do not allow you to while you are in grace, but you will qualify for EHD because it is not the individual loan amount that they use, but the TOTAL loan burden.