Deferment and Forbearance

Deferment

What situations qualify for Perkins deferment and how do I apply?

A deferment is a period during which you are not required to make payments on your Perkins loans.  Deferments are not automatic and you will need to submit a request to our loan servicer ECSI. Some deferments delay repayment of both principal and interest, while others continue to accrue interest or require interest payments. Timely submission of a properly certified deferment form is crucial: lateness in submitting a deferment form has the same adverse consequences as lateness in paying.  Please file for deferment as soon as you are eli­gible. You will be expected to maintain scheduled loan payments until you are notified that your deferment has been approved. 

If you have a loan other than a Perkins loan, contact ECSI at 888-549-3274 to discuss the options
that are available to you.

A borrower is not entitled to a deferment on a defaulted loan.  However, there are circumstances in which a deferment may be granted when a loan is in default. Contact the Billing and Loan Collections office at 319-467-0622 for details.

The following chart includes a list of deferment provisions for Federal Perkins Loans.

Situations When You May Apply for Deferment Deferment Available for Perkins Loans?
You are undergoing cancer treatment Yes: Cancer Treatment Deferment Request
Receiving a means-tested benefit, like welfare (e.g., Temporary Assistance for Needy Families (TANF)):
Work full-time but have earnings that are below 150% of the poverty guideline for your family size and state of residence; or Serving in the Peace Corps
Yes: Economic Hardship Deferment Request
Enrolled in an approved graduate fellowship program Yes: Graduate Fellowship Deferment Request
Enrolled at least half-time (6 hours) at an eligible college or career school Yes: In School Deferment Request
Enrolled in an approved rehabilitation training program that is designed to provide vocational, drug abuse, mental health, or alcohol abuse rehabilitation treatment Yes: Rehabilitation Training Deferment Request
Receiving unemployment benefits or are seeking and unable to find full-time employment.
Note: Full-Time Employment means working 30 or more hours a week in a position expected to last at least 3 consecutive months.
Yes: Employment Deferment Request

APPLICATION PROCESS

  1. Go to ECSI’s website for deferment forms
    https://heartland.ecsi.net/index.main.html#/access/downloadFormPages
  2. Under School Name enter University of Iowa, select and hit continue
  3. Select deferment form you qualify for and click the PDF icon
  4. Follow instructions and return to ECSI

What situations qualify for my Health Professions Loan deferment and how do I apply?

The following loans can also have deferments requested on them.

  • Health Professions Student Loans (Dental and Pharmacy)
  • Loans for Disadvantaged Students
  • Nursing Student Loans
  • Primary Care Loans

You may qualify for this deferment if you are:

  • Active Duty as a member of a uniformed service of the United States
  • A volunteer under the Peace Corps Act
  • Pursuing advanced professional training, including internship and residency
  • On a leave of absence to pursue related educational activity
  • Participating in a graduate fellowship or related graduate educational activity

APPLICATION PROCESS

  1. Go to ECSI’s website for deferment forms
    https://heartland.ecsi.net/index.main.html#/access/downloadFormPages
  2. Under School Name enter University of Iowa, select and hit continue
  3. Select deferment form you qualify for and click the PDF icon
  4. Follow instructions and return to ECSI

Other Options:

If your loan is not eligible for any deferment listed above and you are unable to meet your scheduled payments, you may apply for forbearance.


Forbearance

What is forbearance and how do I apply?

Interest will continue to accrue during forbearance. You will receive monthly bills for the accrued interest. Although you are not required to pay the interest each month, we recommend that you do to avoid facing a high interest payment at the end of the forbearance period. Forbearance offers no post deferment grace period and accrued interest cannot be capitalized.

APPLICATION PROCESS

  1. Go to ECSI’s website for deferment forms
    https://heartland.ecsi.net/index.main.html#/access/downloadFormPages
  2. Under School Name enter University of Iowa, select and hit continue
  3. Select forbearance form you qualify for and click the PDF icon
  4. Follow instructions and return to ECSI