Total Higher Education

A nonprofit lender

Economic Hardship Deferment

This calculator 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.
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