Hardship Deferment/ Forbearance on Federal Loans

Federal student loan deferment or forbearance is a period of time during which students can postpone payments on federal loans. Upon graduation, Federal Stafford loans go into a grace period where no payments are due for six months. However, previously consolidated Federal Stafford Loans and all Federal Graduate Plus Loan will enter into repayment status immediately upon graduation. In order for students to begin studying for the Bar Exam without worrying about having to make payments on these loans, it is important for students to ask their lender for either an economic hardship deferment or forbearance. The difference between the two options is explained below:

Economic Hardship Deferment
Graduates who have no income should apply for an economic hardship deferment. During the repayment term, a student is only eligible for an economic hardship deferment for up to three years. Students graduating from GULC should initially ask for a 6 month hardship deferment, which will put them into repayment on their deferred loans in November 2008 and allow them time to study for the bar without having to worry about loan payments. The Economic Hardship Deferment form can be found on the following links:

• THE Borrowers
• Access Group Borrowers
  

Forbearance
Graduates who aren’t eligible for an economic hardship deferment but are unable to make their loan payments should apply for a forbearance. A forbearance, like an economic hardship deferment, may be requested for up to three years during the repayment term. Subsidized loans in forbearance do accrue interest, unlike under an economic hardship deferment, where subsidized loans do not accrue interest. Students graduating from GULC should initially ask for a 6 month forbearance, which will put them into repayment in November 2008 and allow them time to study for the bar without having to worry about loan payments.

Note: If you borrow through Access Group or Total Higher Education, the Office of Financial Aid will send your deferment forms to your lender for you. Feel free to drop off your forms in our office during regular business hours.