Economic Hardship Deferments for Missionaries

Utah Higher Education Assistance Authority (UHEAA) is updating the guidance for granting an economic hardship deferment to borrowers serving as missionaries.  In order to receive this type of deferment, borrowers must still complete an Economic Hardship Deferment Request, which can be found on the UHEAA Web site under the “Forms” tab, at the following address: http://www.uheaa.org/Defdoc/econhrdshpdef2004.pdf. 

UHEAA recommends that borrowers check box #5 in Section 2 of the form.  In most cases, missionaries will enter their total monthly gross income as “0” in the space provided.  Payments made to a missionary from a church fund are not considered income according to the Internal Revenue Service.  Rather, such payments are treated as reimbursement for travel and living expenses incurred in the service of the church.  As such, these amounts should not be treated as income when completing the Economic Hardship Deferment Request form.  However, any other income (such as income from investments) must be reported.

Borrowers with no income may now provide a self-certifying statement. (See Common Manual, Subsection 10.3.A, Note 1.)  UHEAA has created a sample “Statement of Income” to assist borrowers in providing such certification. It, too, can be found on the UHEAA Web site, at the following address: http://www.uheaa.org/Defdoc/UHEAAEconDef.PDF). This statement, signed by the borrower, certifies that the borrower receives no income from service as a missionary.  No other documentation of missionary service or other signature is necessary.  Once completed, this statement, along with the Economic Hardship Deferment Request form, should be submitted to UHEAA for processing.