If a borrower is willing but financially unable to make the required payments on a loan, he or she may request that the school grant forbearance. Forbearance is a temporary postponement of payments, an extension of time allowed for making payments, or the acceptance of smaller payments than were previously scheduled. Interest will continue to accrue during any period of forbearance. The borrower must request forbearance in writing, providing documentation that supports the borrower's claim that he or she is financially unable to make payments. Forbearance is available for all Perkins loans regardless of when they were made.

Upon approval, forbearance will be granted for a period of up to one year at a time. Periods of forbearance collectively may not exceed three years. Interest will continue to accrue and will be included in the term of forbearance unless the borrower elects to pay interest that accrues.

Forbearance must be granted if the borrower's aggregate student financial assistance payments monthly exceed 20 percent of his or her monthly gross income.

Forbearance may also be granted for ill health or other bona fide reasons such as service in Americorps.

Rehabilitation training
To qualify borrower must provide school with certification from the rehabilitation agency that the borrower is receiving or is scheduled to receive services designed to rehabilitate disabled individuals. Certification must be provided to the school from the agency that one of the following entities licenses, approves, certifies or otherwise recognizes the rehabilitation program in question; a state agency with responsibility for vocational rehabilitation programs, a state agency with responsibility for drug abuse treatment programs, a state agency with responsibility for alcohol abuse treatment programs, a state agency with responsibility for mental health services programs; or the U.S. Department of Veteran's Affairs. The agency must certify that the program provides or will provide services under a written plan that is individualized to the borrower's needs; specifies the beginning and ending date for services; and is structured in such a way that a substantial commitment of the borrower's time and effort is required which would preclude full-time employment.

Economic hardship deferment
The borrower must complete the University's Hardship Deferment Request form and submit supporting documentation that shows that he or she fits one or more of the following criteria: been granted a deferment of any Direct Loan or Stafford Loan for the same time period for which the Perkins Loan deferment is requested; is receiving public assistance such as AFDC, SSI, Food stamps or general public assistance; is working full-time and earning a total monthly gross income that does not exceed the greater of a) the monthly earnings of an individual earning the federal minimum wage or, b) an amount equal to 100 percent of the poverty line for a family of two. (Washington 1997 figure benchmark is $10, 610.00) If you believe you are paying more than 20 percent of your gross monthly income in federal student loan payments, you may qualify for this type of deferment. For further information on qualifying for this part of the Economic Hardship deferment please call the Perkins Loan Office at the University.

Unemployment
Must be actively seeking full-time employment and able to furnish the University with documentation supporting this claim.

Deferments/
Cancellations