Best Answer: Can you do this forever as long as my income is below the bracket? Unbelieveable. No, you're going to pay off your loan in FULL.
You are eligible for a deferment only if you have not yet defaulted on your loans.
Deferment options vary depending on the type of loan and date the loan was incurred. You can get the following deferments for most loans:
In-school deferments for at least half-time study;
Graduate fellowship deferments;
Rehabilitation training program deferment;
Unemployment deferment not to exceed three years;
Economic hardship deferment, granted one year at a time for a maximum of three years; and
There are a number of other deferments available in the Perkins program only, including:
Full-time service for law enforcement and correction officers, and
Volunteer service such as the Peace Corps.
The Direct Loan deferment forms are available on the Department of Education web site. You should contact your guaranty agency or school if you have a different type of loan. You should continue paying while your application is pending.
Economic Hardship Deferment
The economic hardship deferment is an often overlooked, but potentially very useful tool. It is granted one year at a time for a maximum of three years.
The first three qualification categories are “automatic” as long as you can provide supporting documentation. These three categories are:
Previous qualification for economic hardship deferment under another federal loan program.
Receipt of federal or state public assistance benefits. This includes payments under a federal or
state public assistance program such as TANF, SSI, Food Stamps, or state general public assistance.
You qualify if you are serving as a Peace Corps volunteer.
The income-related eligibility categories prior to July 1, 2009 were:
If you are working full-time and your monthly income does not exceed the larger of A) The federal minimum wage rate or B) 150% of the poverty line income for your family size and state. (In 2009, the poverty line for a family of two living in the 48 contiguous states is $14,570), or
If you are NOT working full-time and your monthly income does not exceed the larger of A) two times the federal minimum wage or B) two times 150% of the poverty line for your family size and state. Under this category, you also must show that after subtracting the total amount of monthly payments on federal education loans from your monthly income, the amount remaining is not larger than A) the federal minimum wage rate or B) 150% of the poverty line for your family size and state, or,
If you are working full-time and the total amount of monthly payments on your federal student loans are equal to or larger than 20% of your monthly income. Under this category, you also must show that after subtracting the total amount of monthly federal student loan payments from your income, the amount remaining is less than 220% of the larger of A) the federal minimum wage rate or B) 150% of the poverty line for your family size and state.
Source(s): www.ifap.ed.gov/dpcletters/attachments/F. www.studentloanborrowerassistance.org