repayment, forbearance deferment - …client.ecsi.net/training/documents/perkins_201.pdf ·...
TRANSCRIPT
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REPAYMENT,
FORBEARANCE
&
DEFERMENT
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• Federal Perkins Loan Regulations
2009-2010 Handbook
www.ifap.ed.gov
Interactive
Agenda:
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•Relates to enrollment
•½ time or no longer
enrolled
•9 months
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•Follows a postponement
•6 months
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•Not counted towards 10 years
**See Volume 6 – Chapter 4 **
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•School specific
•Monthly, bi-monthly or quarterly
•5% interest
•CANNOT be capitalized
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Coupons –
Billing Statements -
ACH
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Coupons – 30 days
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Billing Statements -
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ACH
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Payments must be applied in the following
order:
•Collection costs
•Late charges
•Accrued interest
•Principal
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•Prepay Principal
•Advance/Suspense
•MAY prepay all or
part of loan at any
time without penalty
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•Optional •MAY NOT exceed 20%
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•May NOT charge during collection proceedings
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•Deferment
•Forbearance
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•Temporary postponement of payments
•Payments are not required
•Interest does not accrue
•Entitled to post-deferment grace period
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•Do not have to be in writing
•Required documents
•Change in deferment status
•Other loans
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•Default
•New repayment agreement
•De-accelerate the loan
•Late fees first
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•In-school deferment
•Graduate Fellowship deferment
•Rehabilitation training deferment
•Unemployment deferment
•Economic hardship deferment
•Military Service deferment
•13 month post-active duty deferment
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•Enrolled at least ½
time
•Enrolled for
purpose of obtaining
a degree
•Entitled to a deferment of 12 months if
enrolled at least ½ time for a full academic
year and intends to do the same next year
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•Attending as a regular
student
•Part of a Graduate
Fellowship Program
approved by the DOE
•Must provide
certification
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•Approved rehabilitation training program for
disabled individuals
•Must provide required documentation
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•3 years
•Seeking and unable
to find full-time
employment
•Schools determine
documentation
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•Up to 1 year
•Must provide required documentation
Other loans in an Economic Hardship
Receiving Federal/State Public Assistance
Working less than full-time
and 150% rule
More than twice 150% rule
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•Volunteer in the
Peace Corps
•Longer than 1 year at
a time
•CANNOT collectively
exceed 3 yrs.
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•National Guard Duty in
connection with:
War
Military Operation
National Emergency
•National Guard or Armed Forces Reserve & Members of the
Armed Forces who are in retired status
Eligible for a 13 month period of Deferment
Following completion of their active duty service
If enrolled at the time or with 6 months prior to activation
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Temporary postponement of payments
Interest accrues
Not included in 10 yr. repayment period
Borrower may pay interest during
Forbearance, but schools MAY NOT
requite it.
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Financial hardship
Poor health
Other acceptable reasons
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•Must request a
forbearance
•Must provide supporting
documentation of the
reason
•School confirms this
agreement
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•Up to one year at a time
•May be renewed
•Periods MAY NOT exceed a total of 3 yrs.
•May begin retroactively
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•Equal to or greater than 20%
•The borrower must submit the following
documentation:
1. Evidence of total monthly gross income
2. Evidence of monthly payments on his
FSA loans.