I have a student loan which has been under deferment for the last year because of unemployment. The problem is that the student loan office is claiming that an unemployment deferment is valid for only one year and that they have the right to start billing again as soon as I have been unemployed for one full year.
There seem to be two options. One is a forbearance which seems to only last for six months and under which at least some interest is still payable. The other is a hardship deferment, which requires that one be on public assistance or be working for less than 150% of the poverty level, which means about $1250 per month. The forms of public assistance on the form do not include unemployment. The uneployment I am getting is more than the $1250, but it is ttemporary and will end whenever the eligibility ends, which means that I have to save some of it and stretch it out to pay future rent, so I am not actually living on the amount of the unemployment.
Does anyone know how these programs work and does anyone have experience with how to deal with this student loan bureaucracy. Is there a point where it comes in front of a judge instead of the anonymous operators on the telephone?
Any information on this issue would be appreciated. I also plan to write to my Congressman and Senators asking that student loan deferments be extended and made retroactive as part of the jobs bill, but that could come too late for me.
I still have a job offer under the stimulus program, but after all of this time the feeral agency still hasn't made the grant awards under the stimulus program.