Unemployment Deferment Basics
Under the legal definition you should be working less than 30 hours per week in order to be classified as unemployed. If you are qualified as unemployed you can apply for unemployment deferment. This status allows you not to make payments on a student loan you have obtained for some time during you are unemployed.
The application process starts with the request of the appropriate form from your lender. You should fill it in and send it back with the needed documents. All of your claims should be well-supported with the corresponding documents in case your lender requests them.
Unemployment Deferment Eligibility
Your case should be completely documented in order to qualify for an unemployment deferment. You are required to actively seek a job. All of your attempts to find such should be recorded accordingly. If you receive unemployment benefits from your state you should keep the corresponding documents and enclose them with your application to serve as a proof of your unemployment status.
Unemployment Deferment Length
The unemployment deferment continues in cycles of six months. When the first six months pass, you should make a request for a renewal. This is needed because the deferment is not resumed automatically.
Any deferment that has been made before July 1, 1993 has a length of no more than two years. If you have applied after this date, your deferment can last up to 3 years.
The unemployment deferment is terminated once you find a job. You should inform your lender of your changed employment status so that the deferment is ended.
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