Refer to May 6 article for updated information.
Students confused about when their loans can enter hardship deferment?
We’ve heard that some borrowers may have received information that was contrary to what T.H.E. has been sharing. Our customer service reps have talked to callers who heard that their Stafford loan would not be covered by the same hardship deferment as their GradPLUS or consolidation loan (if the deferment began at graduation). Rather, they were told that they would have to treat their Stafford loan separately in order to postpone its repayment, meaning they might have to apply for another deferment or consider forbearance, income-based repayment plans or other options.
This is not the case, however, because deferments are borrower-specific, not loan-specific.
Here are the facts for T.H.E. borrowers: A 2009 graduate who receives a deferment before July 1, 2009 on a GradPLUS or consolidation loan will also receive the deferment on any federal loan that has a six-month grace period. Borrowers should keep in mind, though, that the deferment end date for all of their loans will be 12 months from the date the deferment began. That means that the federal loans that had grace periods would be in deferment for six of the 12 months.
Other lenders and servicers may process deferments differently, so it’s important for borrowers to contact the holder of their loans for more details. If your T.H.E. borrowers have questions about economic hardship deferment, they can get in touch with our loan counselors at 1-866-562-6672.