Economic Hardship Deferment

Available for loans disbursed on/after July 1, 1993

To defer repayment of your loan(s) due to an economic hardship, you must qualify for at least one of the following:

1. Have been granted an economic hardship deferment under either the Federal Direct Loan Program or the Federal Perkins Loan Program for the same time period for which you are requesting this deferment. You must provide documentation of the deferment.
2. Receive payment under a Federal or State public assistance program, such as Aid to Families with Dependent Children, Supplemental Security Income, Food Stamps, or state general public assistance. You must provide documentation of these payments.
3. Work full-time (at least 30 hours per week in a position expected to last at least three months) and your total monthly federal education debt must equal or exceed 20% of your monthly gross income and the difference between your monthly gross income and your monthly federal education debt must be less than 220% of the larger of the amounts listed in (5) below for your state. You must provide documentation of income and education debt.
4. Not work full-time, and your monthly gross income does not exceed twice the larger amount listed in (5) below for your state and after deducting your total monthly payments for federal education debt from your monthly gross income, the amount remaining does not exceed the larger of the amounts in (5) below for your state. You must provide documentation of income and education debt.
5. Work full-time, and your monthly gross income is no more than the larger of the amounts listed below for your state. You must provide documentation of this income.



1. Federal Minimum Wage ($5.15 an hour)
   • $892.66
2. Poverty Line For A Family Of Two
   • $1,069.17 - All States (Including District of Columbia)
   • $1,335.83 - Alaska
   • $1,230.00 - Hawaii

The above information summarizes portions of federal regulations promulgated under the Higher Education Act of 1965 (the "Act"), as amended, and the Act itself, and does not purport to be comprehensive or definitive or to summarize or describe all of the provisions thereof. Such summary is qualified in its entirety by reference to such laws.

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