loan deferment-IMPORTANT

[claudette737]

I just read another thread on Saba's forum that says how previous stafford loans aren't eligible for automatic deferment IF you attend
a school that isn't stafford eligible! Which means unless you ateend the Big 3, you can't defer automatically. You can request a forbearance or economic hardship, but the max is for 3 years. That sucks, cause it means I'd begin repayment my 4th year in school.

I hope this isn't true...

[wcb22]

it is true... but big deal, your undergrad loans will not even come close to the amount of money you'll be taking out for med school. you'll start paying year 4

[claudette737]

Okay, so I have to start paying back undergrad loans year 4. How do they expect you to that, when you're still a full-time student?

Also, while I'm in residency, can I defer ALL of my loans (undegrad and med school) if attending a non-stafford school?

I am so confused..I will call the lenders, but if anyone can plse chime in with experiences, I'd be grateful

[wcb22]

so year 4 roles around... you start paying on your undergrad loans with what money? why, with your medachiever or teri loan, or whatever. you wont start paying on your med school loan until after residency... not until you are licensed, practicing and making big bucks. capice.

[wolfvgang22]

Ok, so we know that an "Economic Hardship" deferment can be done for a maximum of three years while in medical school (assuming you attend a school that does not offer staffords, so you can't get "In-School" deferment).
After that, you can get forebearances for 6 month periods if your lending institution grants them to you.
But, recently, people have posted that you can get an "Educational Deferment" that defers your federal loans while you are in clinicals (internship) and in residency. But there seems to be a problem.
I downloaded the "Educational Deferment" form from the Dept. of Education, and here's what it says:

SECTION 2: DEFERMENT REQUEST
SECTION 3: BORROWER UNDERSTANDINGS AND CERTIFICATIONS
Before answering any questions, carefully read the entire form, including the instructions and other information in Sections 5, 6 and 7.

I meet the qualifications stated in Section 7 for the deferment checked below and request that my loan holder defer repayment of my loan(s):
For all FFEL Program borrowers:
____ While I am engaged in a full-time course of study in a GRADUATE FELLOWSHIP program.
_____ While I am engaged in a full-time REHABILITATION TRAINING program.
For borrowers with an outstanding balance on at least one FFEL Program loan that was made before July 1, 1993, or who had an outstanding balance on a
loan made before July 1, 1993, when he or she obtained a loan on or after July 1, 1993:
_____ While I am engaged in an INTERNSHIP/RESIDENCY* program at an institution of higher education, hospital, or health care facility.
_____ While I am engaged in an INTERNSHIP/RESIDENCY* program at any other institution or organization. Name of Internship/Residency
program:____________________________________
* Federal PLUS Loans qualify for INTERNSHIP/RESIDENCY deferments only if they were made before August 15, 1983; Federal Consolidation Loans do not
qualify for INTERNSHIP/RESIDENCY deferments.
For Federal Stafford and SLS borrowers whose first loans were made on or after July 1, 1987, and before July 1, 1993:
_____ While I am teaching in a designated TEACHER SHORTAGE AREA.

I understand that: (1) I am not required to make payments of loan principal during my deferment. Interest will not be charged on my subsidized loan(s)
during my deferment. However, interest will be charged on my unsubsidized loan(s). (2) I have the option of making interest payments on my unsubsidized
loan(s) during my deferment. (3) I may choose to make interest payments by checking the box below. Interest that I do not pay during the deferment period
will be capitalized by my loan holder.
____ I wish to make interest payments on my unsubsidized loan(s) during my deferment.
(4) My deferment will begin on the date the condition that qualifies me for the deferment began, as certified by the authorized official who completes Section
4 of this form. (5) My deferment will end on the earlier of the date that I no longer meet the condition that qualifies me for the deferment or the ending date
of that condition as certified by the authorized official. (6) If my deferment does not cover all my past due payments, my loan holder may grant me a
forbearance for all payments due before the begin date of my deferment or—if the period for which I am eligible for a deferment has ended—a forbearance
for all payments due at the time my deferment request is processed. (7) If I have used all 24 months allowed for an INTERNSHIP/RESIDENCY Deferment, I
can apply for a forbearance for up to 12 months at a time for the remainder of my internship/residency program. (8) If I am eligible for a post-deferment
grace period on loans made before October 1, 1981, my loan holder may grant me a forbearance on my other loans for this period so that I can begin
repayment of all my loans at the same time. I understand that my loan holder may capitalize the interest that accrues on my other loans during the six-month
period and that this will increase the principal balance of my other loans. (9) My loan holder may grant me a forbearance on my loans for up to 60 days, if
necessary, for the collection and processing of documentation related to my deferment request. Interest that accrues during the forbearance will not be
capitalized.

I certify that: (1) The information I provided in Sections 1 and 2 above is true and correct. (2) I will provide additional documentation to my loan holder, as
required, to support my deferment status. (3) I will notify my loan holder immediately when the condition(s) that qualified me for the deferment ends. (4) I
have read, understand, and meet the eligibility criteria of the deferment for which I have applied, as explained in Section 7.
Borrower’s Signature __________________________________________________ _____________________ Date ______________________________
SECTION 6: DEFINITIONS

The Federal Family Education Loan (FFEL) Program includes Federal Stafford Loans (both subsidized and unsubsidized), Federal Supplemental Loans for
Students (SLS), Federal PLUS Loans, and Federal Consolidation Loans.

A deferment is a period during which I am entitled to postpone repayment of the principal balance of my loan(s). The federal government pays the interest
that accrues during an eligible deferment for all subsidized Federal Stafford Loans and for Federal Consolidation Loans for which the Consolidation Loan
application was received by my loan holder (1) on or after January 1, 1993, but before August 10, 1993, (2) on or after August 10, 1993, if it includes only
Federal Stafford Loans that were eligible for federal interest subsidy, or (3) on or after November 13, 1997, for that portion of the consolidation loan that paid
a subsidized FFEL Loan or a subsidized Federal Direct Loan. I am responsible for the interest that accrues during this period on all other FFEL Program loans.

Forbearance means permitting the temporary cessation of payments, allowing an extension of time for making payments, or temporarily accepting smaller
payments than previously scheduled. I am responsible for paying the interest that accrues on my loan(s) during a forbearance. If I do not pay the interest that
accrues, the interest may be capitalized.

The holder of my FFEL Program loan(s) may be a lender, guaranty agency, secondary market, or the U.S. Department of Education.

Capitalization is the addition of unpaid interest to the principal balance of my loan. This will increase the principal and the total cost of my loan.

Authorized certifying officials:
• Authorized Graduate Fellowship Program Official
• Rehabilitation Training Program Official
• Internship/Residency Program Official (for all internships and residencies)
• State Licensing Official (for internships required to begin professional practice or service)*
• Chief School Administrator (for borrowers teaching in teacher shortage areas; additional certification may be required if the Chief State School Officer has
not provided a list of approved shortage areas to school administrators)
* NOTE: Certification by a state licensing official, if required, must be provided on a separate statement attached to this form.
GRADUATE FELLOWSHIP and REHABILITATION TRAINING Deferments
I may defer repayment of my loan(s) while I am:
• Engaged in a full-time course of study in a GRADUATE FELLOWSHIP program. To qualify: (1) My graduate fellowship program must (a) provide sufficient
financial support to allow for full-time study for a period of at least six months; (b) require, prior to the awarding of financial support, a written statement from
each applicant which explains the applicant’s objectives; (c) require a graduate fellow to submit periodic reports, projects, or other evidence of the graduate
fellow’s progress, and (d) in the case of a course of study at a foreign university, accept the course of study for completion of the fellowship program. (2) I
must (a) hold at least a Bachelor’s Degree conferred by an institution of higher education, and (b) have been accepted or recommended by an institution of
higher education for acceptance into the graduate fellowship program on a full-time basis. (3) If I am in a medical internship or residency program, I am not
eligible for this deferment.
SECTION 7: ELIGIBILITY CRITERIA FOR EDUCATION RELATED DEFERMENT REQUEST
INTERNSHIP/RESIDENCY Deferments
To qualify:
• I must have an outstanding balance on a FFEL Program loan which was made before July 1, 1993, or I must have had an outstanding balance on a FFEL
Program loan made before July 1, 1993, when I obtained a loan on or after July 1, 1993. If I am a Federal PLUS Loan borrower I am eligible for the
INTERNSHIP/RESIDENCY Deferment only on PLUS loans made before August 15, 1983.
I may defer repayment of my loan(s) while I am:
• Engaged in an INTERNSHIP/RESIDENCY program. (Maximum eligibility is two years; borrowers may request forbearance for the remainder of a medical or
dental internship/residency program. Dental Interns/Residents are encouraged to apply for an IN-SCHOOL Deferment.) To qualify: (1) I must have been
accepted into an internship/residency program which must (a) be a supervised training program, and (b) require that I hold at least a Bachelor’s Degree
before acceptance into the program. (2) In addition, my program must either (a) lead to a degree or certificate from an institution of higher education, a
hospital, or a health care facility that offers postgraduate training, or (b) be required before I may be certified for professional practice or service. (3) If my
program does not lead to a degree or certificate, but is required before I may be certified for professional practice or service, I must also provide
(attached to this form) a separate statement from the appropriate state licensing agency certifying this requirement, in addition to the Authorized
Official’s Certification in Section 4.

I highlighted potential problems in bold. This deferment form appears to say that if one took out his or her federal loans after 1993, then those loans cannot be deferred during clinicals or residency. This stinks for me, since I was in high school in 1993, and so of course have no pre-1993 loans.
Somebody tell me if I'm mistaken about this.