A borrower is entitled to have the repayment of a loan deferred or forbearance granted under certain circumstances. A deferment is a period of time during which the borrower is not required to repay the loan principal. Interest will not accrue with an in school deferment only.
A borrower must apply for a deferment in writing by using a deferment form that maybe obtained from AFSA Data Corporation. The borrower must file a form at least once a year for as long as the deferment can be claimed. The borrower must immediately report any change in deferment status to the Credit and Collections Department of the Bursar's Office. NOTICE: The 1998 reauthorization of regulations governing deferments of Perkins Loans (NDSL) has amended some of the deferment provisions effective October 7, 1998.
For Perkins Loans Made Before July 1, 1993
A borrower of a Perkins Loan made before July 1, 1993 may defer repayment if he or she is enrolled at least half time as a regular student in an eligible institution. Such a borrower may also defer repayment for up to three years and interest will not accrue while he or she is:
- A member of the U. S. Army, Navy Air Force Marines, or Coast Guard;
- A member of the National Guard or the Reserves serving a period of full-time active duty in the armed forces; · An officer in the Commissioned Corps of the U.S. Public Health Service;
- On full-time active duty as a member of the National Oceanic and Atmospheric Administration Corps;
- A Peace Corps volunteer;
- A volunteer under Title I, Part A of the Domestic Volunteer Service Act of 1973 (ACTION programs);
- A full-time volunteer in service for a tax-exempt organization that the Department has determined is comparable to Peace Corps or ACTION service, or
- Temporarily Totally Disabled or unable to work because he or she must care for a spouse or other dependent who is so disabled. A Perkins Loan or NDSL borrower is entitled to a 6-month grace period after each type of deferment (a "post-deferment" grace period).
|
