Can an economic hardship be used for Temporary Total Disability?
No. If the note date is on or after 07/01/93, a forbearance (“M” deferment) should be processed for a temporary total disability or prolonged illness. Loans with a note date from 10/01/80 to 07/01/93 are eligible for a Temporary Total Disability (Type D) for up to three years. Borrowers are also eligible for this type of deferment if they are caring for a spouse who is temporarily totally disabled. Loans with a note date from 07/01/87 to 07/01/93 with a nine-month original grace period are eligible for a temporary total disability for the borrower or a disabled dependent (Type B). A six-month post-deferment grace period will follow a temporary total disability deferment.
