Hardship Deferment this year for old college loans with expired grace periods?

[Poitiers2]

I'm completing medical school this year and beginning my intern year. I took time off between college and medical school, and the grace period on my college loans expired. So am I correct in thinking that I'm in the position to file for hardship deferment on my loans with expired grace periods (prior to July 1, 2009) and to start making IBR payments after the grace period runs out on my medical school loans?

It's only about $8,000 or loans that I could potentially defer, but that's government subsidized debt that I could hold back interest on for one more year.

I apologize for the abundance of questions, but my school has been absolutely useless in helping us understand our financial situation. What's more, our financial aid office is clueless.

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[Acherona]

Yes, I'm pretty sure I have done what you are talking about with my loans.

I am also graduating this year and had consolidated my first year med school stafford loans with some undergrad loans. By consolidating I lost my grace period on those med school stafford loans, however, I was able to immediately apply for economic hardship deferment and now have the subsidized portion of that consolidated loan paid by the government until April 2010. Not that long but better than nothing. I wish it were possible to remove our loans from the 6mo grace period so we could get them all in before July 1. Wrong year to graduate

 

[pem8erly]

the 6 months grace period is mandatory? I never knew that. I was thinking that I would just put my loans into repayment early and then apply for economic hardship before July 1st. Will lenders not allow this?

 

[Acherona]

the 6 months grace period is mandatory? I never knew that. I was thinking that I would just put my loans into repayment early and then apply for economic hardship before July 1st. Will lenders not allow this?

That's what salliemae told me.

As far as I understand it, with IBR the gov't' will still pay the interest on the sub loans if the interest accruing per month exceeds your monthly payment of 15% of your salary.

 

[hkny79]

Read somewhere on here if you have deferment on part of your loans that once the grace period ends 6 months later, that part of the loans will also get the same deferment till the end of the year. not exactly sure if it is true..

 

[Acherona]

Read somewhere on here if you have deferment on part of your loans that once the grace period ends 6 months later, that part of the loans will also get the same deferment till the end of the year. not exactly sure if it is true..

sallimae said you might be able to do this, but you need to have the same income after the grace period as when you put the old loan into deferment.

 

[hkny79]

Hey Acherona,
What was the process for applying for hardship deferment? Is it complicated or just a few papers? Did you apply directly with your lender or did you have some agency take care of your application?

So under the current deferment rules, is the hardship deferment the best way to qualify for the deferment for residency?

 

[Acherona]

Hey Acherona,
What was the process for applying for hardship deferment? Is it complicated or just a few papers? Did you apply directly with your lender or did you have some agency take care of your application?

So under the current deferment rules, is the hardship deferment the best way to qualify for the deferment for residency?

For one loan I did it online through the servicer's website, for the other loan I actually just did it over the phone, very easy. Yea I think it's the only deferment most of us qualify for (there is also forbearance, which is slightly different).

 

[CarleneM]

How are you guys graduating this year able to qualify for economic hardship based on a small amount of undergrad debt (OP said $8000) and whatever you consolidated in-school when that was allowed??! The bulk of your debt is still under a 6 month grace period and when I run the numbers for ten year repayment for my situation (~$4000 from undergrad with no grace and a $29000 consolidation without a true grace period) there's no way I'm at 20% of my income. It would only work if the 77K that has the 6 month grace was included.....

Also, if i apply for forbearance with the direct lender on the undergrad loan that has no grace, do I need to reapply again for forbearance on the rest of the direct loans once their grace period ends in 6 months or do they keep track?