What a hardship request actually does in Arkansas
A hardship request in Arkansas is a formal notice to your loan servicer or creditor that you cannot make your regular payments right now due to a temporary financial crisis. When you submit one, you are asking for either a deferment (pause on payments, usually 3 to 12 months) or forbearance (reduced or suspended payments while you catch up). The servicer does not automatically grant it — they review your situation and decide whether to approve it, modify it, or deny it.
Arkansas has no state-specific hardship program that overrides federal or private loan rules. Instead, you work directly with whoever holds your loan: a federal loan servicer for student loans, your mortgage lender for a home loan, your auto lender for a car loan, or a credit card company. Each has its own hardship policies and forms. The process typically takes two to four weeks from submission to a decision.
Key Takeaways
- You submit a hardship request directly to your loan servicer or lender, not to a state agency — Arkansas does not run a central hardship program.
- Hardship requests require documentation of your income loss or expense increase, such as a termination letter, medical bills, or proof of reduced hours.
- Federal student loans have the most flexible hardship options, including income-driven repayment plans that can lower your payment to $0 per month.
- Mortgage and auto lenders vary widely in what they will approve, so calling your servicer to discuss options before you miss a payment produces better results than waiting.
- Interest may continue to accrue during forbearance on some loans, so understanding the terms before you agree is critical.
Gather the documents your lender will ask for
Before you contact your servicer, collect proof of your hardship. Lenders want to see that your income has dropped or your expenses have risen, and they want evidence, not your word. The most common documents are a termination letter from your employer, a recent pay stub showing reduced hours, medical bills or hospital statements, a notice of job loss or furlough, or a letter from your employer explaining a temporary layoff.
You will also need your loan account number (on your statement or bill), your current monthly income (or zero if you have no income right now), and a list of your current monthly expenses. Some lenders ask for bank statements from the past two months to verify your situation. Have these ready before you call or submit an online form — servicers often ask for them when ready, and delays in sending them can slow your approval.
Contact your servicer and request the hardship form
Call the customer service number on your loan statement or bill. Tell them you are experiencing a financial hardship and want to discuss your options. Do not wait until you have missed a payment — calling before you fall behind gives you more options and shows good faith. Ask specifically whether they offer deferment, forbearance, or income-driven repayment (for student loans), and ask them to mail or email you the hardship request form.
Write down the date, time, and name of the representative you spoke with. If they promise to send a form, follow up in writing (email is fine) to confirm what they said they would send and when. This creates a record if there is a dispute later about whether you requested help.
Complete and return the hardship form with your documentation
The form will ask you to describe your hardship, state your current income, list your monthly expenses, and explain how long you expect the hardship to last. Be honest and specific. "I lost my job" is less persuasive than "I was terminated on March 15, 2024, and have not found new work yet." Lenders are more likely to approve requests that sound temporary and recoverable.
Attach copies (not originals) of your supporting documents. If you are mailing the form, use certified mail with return receipt so you have proof it arrived. If you are submitting it online through the servicer's website or app, take a screenshot showing the submission confirmation. Keep a copy of everything you send for your records.
Understand what happens during forbearance or deferment
If your request is approved, your servicer will send you a letter stating the terms: the start date, the end date, whether you owe any payments during this period, and whether interest will accrue. Read this carefully. On federal student loans, interest does not accrue during deferment if you have a subsidized loan, but it does accrue during forbearance. On mortgages and auto loans, interest almost always continues to accrue, meaning you will owe more at the end than you would have without the hardship period.
During forbearance or deferment, you are not required to make your regular payment, but you can still make payments if you are able to — doing so reduces the total interest you will pay. When the hardship period ends, your servicer will tell you what happens next: whether your payments resume at the original amount, whether you enter a repayment plan, or whether you need to contact them again to arrange a new plan.
What to do if your request is denied
If your servicer denies your hardship request, they must tell you why in writing. Common reasons are that your income is too high, your hardship does not meet their definition, or you do not have enough documentation. Ask the servicer what additional information they need or whether you can reapply after a certain period. Some lenders will approve a second request if your situation has worsened or if you provide more documentation.
If you have federal student loans, you have additional options even if forbearance is denied: you can request an income-driven repayment plan, which recalculates your payment based on your current income and can result in a payment of $0 per month. For mortgages and auto loans, contact a HUD-approved housing counselor (through the Arkansas Department of Human Services) or a nonprofit credit counselor to discuss alternatives like loan modification or refinancing.
Hardship requests for different loan types
Federal student loans: Contact your loan servicer (Navient, Mohela, Nelnet, or another servicer listed on your statement). Request forbearance or an income-driven repayment plan. Income-driven plans are often the better option because they are permanent (not time-limited) and can lower your payment to $0 if your income is very low.
Mortgages: Call your mortgage servicer (the company that collects your payment, not necessarily the bank that originated the loan). Ask about loan modification, forbearance, or a repayment plan. Servicers are required by federal law to consider your request if you are in financial hardship. The process can take 30 to 90 days.
Auto loans: Contact your lender directly. Options vary widely — some offer payment deferrals, some offer forbearance, and some will not work with you until you have missed a payment. Calling early gives you the best chance of avoiding a missed payment on your credit report.
Credit cards: Call the number on your statement and ask for the hardship department. Credit card companies often offer reduced interest rates, waived fees, or a temporary payment plan if you explain your situation. These are not formal deferments, but they can lower your monthly obligation.
Frequently Asked Questions
Will a hardship request hurt my credit score?
Requesting forbearance or deferment itself does not appear on your credit report. However, if you have already missed a payment before requesting help, that missed payment will be reported and will lower your score. Requesting help before you miss a payment protects your credit.
What if I cannot afford my payment even after forbearance ends?
Contact your servicer at least 30 days before the forbearance period ends and ask about a permanent solution: an income-driven repayment plan for student loans, a loan modification for a mortgage, or a refinance for an auto loan. Do not wait until the payment resumes and you cannot pay it.
Can I get a hardship deferment on multiple loans at once?
Yes, you can request hardship relief on each loan separately. Each servicer makes its own decision based on your income and expenses. If you have multiple loans, prioritize the ones with the highest payments or the most serious consequences for missing a payment (mortgage first, then auto, then student loans).
How long does a hardship request take to be approved?
Most servicers respond within two to four weeks of receiving a complete process. If you do not hear back within that time, call and ask for a status update. Incomplete applications take longer, so make sure you submit all requested documentation the first time.
What if my hardship is permanent, not temporary?
Forbearance and deferment are designed for temporary hardships. If your income has permanently decreased, ask about income-driven repayment (for student loans) or loan modification (for mortgages). These options adjust your payment based on your new income level rather than pausing it temporarily.