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Deferment/Postponement of Repayment

    • Last Updated: 05/22/2017
    • Effective Date:

    Policy Statement
    The Bursar’s Office Division will maintain compliance with the Federal Regulations and Promissory notes for deferments and postponements of repayment.
    Reason for policy
    The Bursar’s Office Division Deferment and Postponement of Repayment policy is needed to ensure borrowers who are in need of temporary relief from loan repayment.
    Procedures

    The Federal Perkins Loan program has Federal Regulations which determine the types of deferments for the loan program. University long- term loans only have an enrollment deferment option. University short-term loans do not have any deferment provisions. A Federal Perkins Loan deferment allows the temporary postponement of principal payments and in some cases also interest payments while a borrower meets certain criteria. The Federal Perkins loan has several different deferment provisions which each provision has different criteria borrowers must meet in order to receive the deferment benefit. Borrowers may request a form by contacting our office or visiting our website, http://busfin.uga.edu/bursar/bursar_loan_servicing_forms/

    Economic Hardship Deferment: 1) Borrower obligation on all FSA loans is equal to or greater than 20% of the borrower’s total monthly gross income. 2) Borrower is working full time but earning an amount that does not exceed the greater of the federal minimum wage or an amount equal to 100% of the poverty line for a family of their size. 3) Borrower has been granted an economic hardship deferment on their Direct Loans for the same time of this request. 4) Borrower receives federal or state general public assistance. 5) Borrower is facing a prolonged period of illness. This deferment type can be granted for up to six months per request and cannot exceed three years in total and allows a six month grace period before repayment resumes. This deferment allows the temporary suspension of only principal repayments, and the interest continues to accrue. 

    Forbearance Deferment: Borrowers whose Title IV debt burden equals or exceeds 20% of their gross income. This deferment type can be granted for up to six months per request and cannot exceed three years in total. This deferment allows the temporary suspension of only principal repayments and the interest continues to accrue. 

    Graduate Fellowship Deferment: Borrowers who are full-time students in a course of study that is part of a graduate fellowship program approved by the Department. This deferment type can be granted for up to one year per request and reapplied for if borrower remains eligible. This deferment allows the suspension of principal and interest (interest does not accrue) repayments during the deferment period.

    In-school Deferment: Borrowers who are enrolled at least half-time in an eligible institution. This deferment type can be granted for up to one year per request and reapplied for if borrower remains eligible. This deferment allows the suspension of principal and interest (interest does not accrue) repayments during the deferment period.

    Military Deferment: Borrowers who serve on active duty or performing qualifying National Guard duty in connection with a war, military operation or national emergency. This deferment would end 180 days after the borrower’s demobilization date for the eligible active duty or National Guard service.

    Unemployment Deferment: Borrowers who are seeking, but unable to find full time employment. This deferment type can be granted for up to six months per request and cannot exceed three years in total and allows a six month grace period before repayment resumes. This deferment allows the temporary suspension of principal and interest repayments.

    Forms/Instructions
    Additional contacts

    Michele Sellers

    Phone Number: 706-542-2965

    Responsibilities

    Responsible University Senior Administrator: Vice President for Finance & Administration

    Responsible University Administrator: Associate Vice President and Controller

              Policy Owner: Bursar’s Office Division

              Policy Contact: Michele Sellers

              Phone Number: 706-542-2965

    Record Retention

    This series documents payments, adjustments, draw advances, address and status changes, cancellations, deferments, and postponements on borrower's accounts.

    Retention: 5 years after loan is paid, BOR 0472-06-015

    Federal Code: 34 C.F.R. 674