Now that you have completed your education at New York Medical College, you may be eligible to defer or postpone payment on one or more of your loans if you meet certain requirements, e.g., if you are completing your medical residency.
Prior to receiving a deferment, you will need to contact your lender to obtain a residency deferment request form. You must submit to the holder of your note verification of your status during the deferment period and evidence confirming your eligibility. It is your responsibility to provide the note holder with all required information regarding your deferment. After you have completed your deferment request, take it to the designated office in the hospital where you are doing your residency.
Warning! You must continue to make your scheduled payments until you receive confirmation from your holder that your deferment has been processed. If you discontinue your payments without your holder's confirmation, you will enter delinquency.
Loan Specific Deferments
The length and type of deferment depends on the terms disclosed in the borrower's promissory notes.
Borrower Specific Deferments
These deferments involve the loss of the two-year residency deferment associated with the Federal Stafford Loan. On July 1, 1993, Congress created two groups of borrowers in the Stafford Loan Program.
"Old Stafford borrowers" are those who, as of July 1, 1993, had an outstanding balance on their Federal (GSL, SLS, or Stafford) Loans. Congress allowed these borrowers to keep the two-year deferment on all their Stafford Loans taken out before July 1, 1993 as well as all those taken out after July 1, 1993. However, if an "old Stafford borrower" paid back the loans that were taken out prior to July 1, 1993 and then borrowed again after July 1, 1993, they are considered a "new Stafford borrower".
"New Stafford borrowers" are those who began borrowing Federal funds on or after July 1, 1993. These borrowers are not eligible for the two-year residency deferment on these loans, but may request a mandatory forbearance or apply for an economic hardship deferment or on their Federal Stafford Loans (including SLS and GSL). It is important to note that interest continues to accrue on unsubsidized loans during deferment and forbearance.
The deferment programs most applied for by residents are:
Residency Deferment – "Old Stafford borrower" loans may be deferred for a maximum of two years based on a borrower's status as a resident in an accredited internship and residency program.
Economic Hardship Deferment - Only available to "new Stafford borrowers" or for Federal Perkins Loans taken out after July 1, 1993. There is a three-year maximum for this deferment. See the economic hardship section to see if you qualify. You must fill out an official Economic Hardship Deferment request form and qualify with your lender to defer your loans.
Graduate Fellowship Deferment - This deferment applies to Federal Stafford, Federal SLS, Federal Consolidation, and Federal PLUS borrowers. There are no limits on the number or duration of graduate fellowship deferments for eligible borrowers.