Total Higher Education

Economic Hardship Deferment

This calculator is only applicable for federal loans that entered repayment on or before June 30, 2009.
It estimates your ability to qualify for Economic Hardship Deferment (EHD) based on Condition 6 of the EHD Request, which considers a borrower's debt-to-income ratio.

Instructions

Step 1

  1. Select the state in which you live.
  2. Enter your current monthly income from employment and other sources before taxes and deductions or one-twelfth of your "adjusted gross income" (exclude spouse's portion) on your most recent federal tax return.
  3. Enter your family size.

Step 2

Add each of your federal loans by entering the current loan balance and interest rate.


Step 3

After all loans have been entered and reviewed for accuracy, click Calculate to see if you qualify.


Step 4

Review results to determine if you have qualified for Economic Hardship Deferment.

Important Notes

Here is a list of interest rates on federal student loans:

  • Stafford loans disbursed after 6/30/2006 – 6.8%
  • Stafford loans disbursed between 7/1/1998 and 6/30/2006 - 3.61% in grace and 4.21% in repayment.
  • GradPLUS – 8.5%
  • Perkins loans – 5%

Condition 6 applies to full-time workers, e.g. typical medical resident.

In order to qualify for this deferment a borrower must pass two tests:

  1. Test 1 – Your monthly student loan payment is at least 20% of your monthly income.
  2. Test 2 – Your monthly income minus your monthly student loan payment must be less than 330% of the state poverty line and 220% of the minimum wage.
Step 1 of 4
Provide information
Alaska
Hawaii
Other
Step 2 of 4
Enter federal loans

Step 3 of 4
Review the loans that you have entered
Step 4 of 4
Review test results
Calculation is currently invalid. Please, Re-Calculate.
Note: Federal Regulations require a $50 minimum monthly payment for any account (loan type specific). All calculations are based on loan amount and full repayment term.
Skip Navigation Links