If you are a Health Professions Student Loans (HPSL) borrower, learn more about deferments and forbearance.
Borrowers can qualify for deferment on the basis of advanced professional training for the duration of that training if it is:
A borrower who completes advanced professional training at an institution in a foreign country may be eligible for deferment, provided that the borrower will receive credit towards his or her board certification. It is the school's responsibility to make the final determination in this case.
A Loans for Disadvantaged Students (LDS) borrower, who is still a full-time student in a health professions school, may obtain deferments for a leave of absence to pursue full-time educational activities that are directly related to the health profession for which the borrower is preparing. The borrower must be taking the leave of absence with the intent of returning to the original school as a full-time student. The deferment is limited to two years.
The related educational activity must meet the following criteria for the borrower to obtain a deferment:
OR
Graduates of health professions schools who borrowed HPSL funds are eligible for deferments if they participate in certain fellowship training programs. The fellowship training must be directly related to the health profession for which the borrower obtained the HPSL. In addition, the borrower must enter into the fellowship either prior to the end of his/her advanced professional training or no later than 12 months after the borrower completed participation in that advanced professional training. The fellowship training itself must meet certain criteria in order for the borrower to obtain the deferment. Specifically, the fellowship training must be a:
Graduates of health professions schools who borrowed HPSL funds are also eligible for deferments if they participate in certain educational activities. The educational activity must be directly related to the health profession for which the borrower obtained the HPSL. In addition, the borrower must enter into the activity either prior to the end of his/her advanced professional training or no later than 12 months after the borrower completed participation in that advanced professional training.
The related educational activity must meet the following criteria for the borrower to obtain a deferment:
OR
OR
Borrowers who perform active duty as a member of a uniformed service (Army, Navy, Marine Corps, Air Force, Coast Guard, the National Oceanic and Atmospheric Administration Corps, or the U.S. Public Health Service Commissioned Corps) are eligible for deferment for up to three years. Such service performed during the grace period does not count as part of the maximum deferment period for which the borrower is eligible, nor does it entitle the borrower to a grace period after the deferment period ends.
This deferment provision is specifically limited by statute to borrowers on active duty who are members of a uniformed service and does not apply to borrowers who are employed by one of the uniformed services in a civilian capacity. For example, a borrower who is working for the Public Health Service (PHS) and who is not a member of the Commissioned Corps would not qualify for deferment.
A borrower who is fulfilling an NHSC scholarship obligation through the "private practice option" or through the "private placement option" rather than as a PHS commissioned officer would not be eligible for deferment.
Borrowers who volunteer under the Peace Corps Act are eligible for deferment for up to three years. Such service performed during the grace period does not count as part of the maximum deferment period for which the borrower is eligible, nor does it entitle the borrower to a grace period after the deferment period ends.
Service in VISTA does not qualify for deferment.
HPSL and LDS borrowers may request a financial hardship forbearance if they are experiencing financial difficulty, but do not qualify for any other type of deferment. Forbearance only defers principal payments. Interest continues to accrue. All interest is due at the end of the forbearance period, and cannot be capitalized (added to the principal balance, and charged interest upon the new balance). Forbearance may be requested by completing our Financial Arrangement Form.
Please note: Forbearance periods count toward the 10-year repayment period allowed for HPSL and LDS. This will cause a balloon payment as the last payment in the 10-year cycle, which could be quite large. Forbearances should only be used when absolutely necessary.
Note: ECSI Financial Arrangement Form is not available. Contact Student Loan Accounts and Collections.
