New York Medical College

Admissions & Financial Aid

Economic hardship

If you are a ‘new’ Stafford borrower(July 1, 1993) and a full-time employee, but are not making enough to support yourself and make payments on your federal student loans, you may apply for an Economic Hardship Deferment before requesting forbearance.

 The following requirements must be met before applying:

  1. The borrower's total monthly loan payments on federal (all FFELP loans, Direct loans, Perkins, HEAL, HPSL, LDS, PCL, NSL) loans amortized over 10 years must EQUAL or EXCEED 20% of monthly gross income.
  2. The borrowers monthly gross income minus total monthly loan payments, as described above, must be less than $2,128.50 (220% of the greater of the monthly wage or the monthly living standard for a family of two living in poverty).



PGY-1 annual salary $34,104

PGY-1 monthly salary $2,842

Total Loan Portfolio $74,000

Monthly Loan Payments $1,047.55**

**Estimated payments calculated at 6.86% interest in school and grace, 7.46% interest during repayment on $34,000 in subsidized Stafford and $40,000 in unsubsidized Stafford.

Do you meet the first requirement? YES

1. $1,047 is equal to or greater than 20% of your monthly gross income or $569 (20% of $2,842)

Do you meet the second requirement? YES

2. $1,795 ($2,842 minus $1,047) is less than $2,128.50

If you meet both of the requirements, you qualify for an Economic Hardship Deferment:  If you met the above qualifications AND for additional information you can download the current Economic Hardship Deferment form here.

 Answers to some frequently asked questions:

  • Spousal income is not included when determining eligibility
  • All borrower income is counted, including that from moonlighting
  • You may not apply for a economic hardship deferment once you have used up your two year residency deferment ('Old borrowers')
  • Although you may not qualify the first year, applications are accepted throughout residency. Qualifications are more difficult to meet farther into residency 
  • Eligibility for Economic Deferment is three years, one year at a time
  • Servicers use gross income to calculate eligibility


*Please note: All terms in bold/italic appear on our Glossary page.