Can deferment be taken away?

[kc12286]

I have an SL through BOA, payments to be made through ACS. I originally applied for ECH  and was granted it for 24 months. I got a letter in the mail saying my loan would be granted deferment until 2012. I believe this was becuase I had applied and registered to take classes, however, I never ended up taking those classes. Today I received a letter in the mail saying I have a payment due on 4/14/11 for 231 and change? So what I'm trying to figure out is, did they take the deferment away? It certainly seems that way.

[laz98]

yes, they sure can, especially if you applied for a "going back to school" deferment.  since you didn't, there's really no reason for them to honor your deferment.

[kc12286]

I didn't apply for it though, I originally applied under ECH, which I guess was about to expire anyway. From reading the ACS website, seems the school notified that I was going back and then I guess notified when classes were canceled.

It was just strange because a few weeks back I had received a letter saying my deferment was about to end and in the same envelope I receieved another letter that it was extended through 2012.

[Tazman81]

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@kc12286 wrote:

I didn't apply for it though, I originally applied under ECH, which I guess was about to expire anyway. From reading the ACS website, seems the school notified that I was going back and then I guess notified when classes were canceled.

It was just strange because a few weeks back I had received a letter saying my deferment was about to end and in the same envelope I receieved another letter that it was extended through 2012.

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It likely wasn't the school, but the National Clearing House that got update to say that you were not in school.  Normally the loan companies get updates from the clearinghouse and that is why they put your loan back in deferment when you registered for classes even though you didnt ask them too.  Same thing happened when they took your loan out of deferment.

[kc12286]

Now here's my other question, I'll likely apply for another deferment under economic hardship, the website says I can do that for a maximum of 36 months, as I've already used 24, that means that this year 2011-12 would be the last year. If I go back to school (starting in August)  and they're notified by Clearinghouse or whomever, would they change it to "going back to school" again? From what I understand as long as I'm in school I wouldn't be expected to make payments. I'll probably make some anyway, just to start paying some of it. Especially since I'll be taking out more loans to go back to school.

[Tazman81]

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@kc12286 wrote:

Now here's my other question, I'll likely apply for another deferment under economic hardship, the website says I can do that for a maximum of 36 months, as I've already used 24, that means that this year 2011-12 would be the last year. If I go back to school (starting in August)  and they're notified by Clearinghouse or whomever, would they change it to "going back to school" again? From what I understand as long as I'm in school I wouldn't be expected to make payments. I'll probably make some anyway, just to start paying some of it. Especially since I'll be taking out more loans to go back to school.

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You are correct regarding them changing the status.  Also, just so that you have the language correct, usually it is a "deferment" when you are in school.  But for an economic hardship then it's called a "forebearance".  This will help you as you research it on their website.  Now, if you have a payment due in April, please be prepared to make that payment, even if you've already submitted your application for a forebearance.  Reason being, is that you don't want them to have drag their feet on reviewing and approving (or denying) your application and then you have a 30 day late on your credit because of the payment that is due.

So, apply as soon as you can.  As long as it gets approved within a few days of your payment date, then you should be good.  Otherwise, be prepared to make that payment if you are getting close to it being 30 days past due.

[kc12286]

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@Tazman81 wrote:

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@kc12286 wrote:

Now here's my other question, I'll likely apply for another deferment under economic hardship, the website says I can do that for a maximum of 36 months, as I've already used 24, that means that this year 2011-12 would be the last year. If I go back to school (starting in August)  and they're notified by Clearinghouse or whomever, would they change it to "going back to school" again? From what I understand as long as I'm in school I wouldn't be expected to make payments. I'll probably make some anyway, just to start paying some of it. Especially since I'll be taking out more loans to go back to school.

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You are correct regarding them changing the status.  Also, just so that you have the language correct, usually it is a "deferment" when you are in school.  But for an economic hardship then it's called a "forebearance".  This will help you as you research it on their website.  Now, if you have a payment due in April, please be prepared to make that payment, even if you've already submitted your application for a forebearance.  Reason being, is that you don't want them to have drag their feet on reviewing and approving (or denying) your application and then you have a 30 day late on your credit because of the payment that is due.

So, apply as soon as you can.  As long as it gets approved within a few days of your payment date, then you should be good.  Otherwise, be prepared to make that payment if you are getting close to it being 30 days past due.

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This is directly from the website:

Select a deferment type to review eligibility and download a form.

In School	You must be enrolled at least half time at an eligible institution.
Unemployment*	You are working less than 30 hours per week and are seeking full time employment.
Graduate Fellowship	You have been recommended by an institution of higher education for a graduate fellowship program that is expected to last at least six months.
Rehabilitation Training	You are in a licensed and approved rehabilitation training program
Economic Hardship*	You may be eligible to defer your loans based on your debt to income ratio.
Military	You are on active duty in the Armed Forces of the United States (Army, Navy, Air Force, Marine Corps or Coast Guard) during a war or other military operation or national emergency or performing qualifying National Guard duty during a war, other military operation or national emergency. You or your representative may complete the form. See Section 6 of the deferment form for the definition of active duty for the Military Service Deferment.
Post-Active Duty Student Military	You were on active duty and were enrolled in school at least-half-time at the time, or no more than six months prior to the time, you were called to active duty. See Section 6 of the deferment for the definition of active duty for the Post-Active Duty Student Deferment.

* This form may also be submitted online.

These deferments do not fit my situation, please take me to other options.

Restart Deferment Assistant

And that's under deferments:

Forebearance lists similar options. I'd be applying for a deferment, not forbearance. But since you mentioned the wording specifically the letter I got initially listed it as deferment and then this letter listed it as being in forebearance. Like I said,I originally applied for a deferment because my debt to income ratio just didn't allow for me to make payments on the loan at that point.

[Tazman81]

Well, it seems to me that ACS even has issues with their communication of what options they offer for their loans.  I hope it works out and they are able to get you under one of their programs so that you don't have to make payments or just pay reduced payments until you are in a better position financially.