Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is an economic hardship deferment?

April 26, 2017deferment Economic hardship

0

Posted

What is an economic hardship deferment?

1 Answer

0

Posted

The economic hardship deferment allows for a period of time where no payment is necessary and interest does not accrue. This deferment is renewable at 6-month intervals. You receive an added 6-month grace period at the end of each deferment period. During this grace period, no payment is necessary and interest does not accrue. You are returned to your normal billing cycle once the grace period ends. The maximum amount of economic hardship time allowed over the life of the loan is 3 years.