With graduation fast approaching, we want to remind you that the Economic Hardship Deferment program has new eligibility rules in place, allowing more students to qualify for the program.
To find out if they are eligible, students can use our updated Economic Hardship Deferment calculator or refer to a coversheet that outlines the requirements and documents they will need to provide when applying for deferment.
Keep in mind that students with consolidation or GradPLUS loans need to apply for deferment before they graduate because their loans do not carry a grace period. Applying for deferment before graduation ensures that interest will not capitalize on consolidation and GradPLUS loans.
If your students have any additional questions, our experienced debt management counselors are here to help. Debt management counselors can be reached at 1-866-562-6672 or debtmanagement@theloanprogram.org
The chart below outlines the new income-to-debt requirements necessary to qualify for Economic Hardship Deferment.
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This graph can be used as a general guideline to help you determine whether or not you are likely to qualify for an economic hardship deferment under condition six. Locate the point that your annual income intersects your total federal student loan debt on the graph. If this point is above the line, you likely qualify for an economic hardship deferment. Qualification Condition- (6) Work more than 30 hours per week(full time) and Your student loan payments are more than 20% of your monthly gross income and Your monthly gross income after your student loan payment(s) is less than 330% of the federal poverty level based on family size. |
Annual Income | Monthly Income | Qualify with Stafford Loans at 6.8% |
| $31,000 | $2,583 | $44,900 | |
| $32,500 | $2,708 | $47,100 | |
| $35,000 | $2,916 | $50,700 | |
| $37,500 | $3,125 | $54,400 | |
| $40,000 | $3,333 | $58,000 | |
| $42,500 | $3,541 | $61,550 | |
| $45,000 | $3,750 | $77,350 | |
| $47,500 | $3,958 | $95,500 | |
| $50,000 | $4,166 | $113,500 | |
| $52,500 | $4,375 | $132,000 | |
| $55,000 | $4,583 | $149,750 | |
| $57,500 | $4,791 | $168,700 | |
| $60,000 | $5,000 | $186,000 | |
| $62,500 | $5,208 | $204,500 | |
| $65,000 | $5,416 | $222,500 | |
| $67,500 | $5,625 | $240,500 | |