| DCLPublicationDate: 9/1/97 DCLID: 97-L-198 AwardYear: Summary: This letter provides guidance relating to the filing of the Lender's Application for Payment of Insurance Claim (ED Form 1207). September 1997 97-L-198 SUBJECT: This letter provides guidance relating to the filing of the Lender's Application for Payment of Insurance Claim (ED Form 1207). Dear Colleague: Enclosed is a copy of the revised "Lender's Application for Payment of Insurance Claim" (ED Form 1207). The ED Form 1207 is used to request payment of a claim for a borrower on a Federal Insured Student Loan (FISL) under the following categories: default, death, permanent and total disability, bankruptcy, closed school and false certification. It may also may be used if the U.S. Department of Education (ED) informs lenders to submit Federal Family Education Loan claims directly to ED for a specified insolvent Guaranty Agency. The form has been revised to incorporate the expiration date of August 31, 2000. The old form will be obsolete effective October 1, 1997 and all claim submissions should be filed using the new form. Any resubmissions of previously rejected claims should also be submitted on the new form. If you have any questions concerning this form, please contact the Lender Reporting Team at (202) 708-9776. Sincerely, Linda Paulsen Director, Accounting and Financial Management Service Enclosure LENDER'S APPLICATION FOR PAYMENT OF INSURANCE CLAIMS - ED FORM 1207 According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless such collection displays a valid OMB control number. The valid OMB control number for this information collection is 1840-0517. The time required to complete this information collection is estimated to average 27 minutes per response, including the time to review instructions, search existing data resources, gather the data needed, and complete and review the information collection. IF YOU HAVE ANY COMMENTS CONCERNING THE ACCURACY OF THE TIME ESTIMATE(S) OR SUGGESTIONS FOR IMPROVING THIS FORM, PLEASE WRITE TO: U.S. Department of Education, Washington, D.C. 20202-4544. IF YOU HAVE COMMENTS OR CONCERNS REGARDING THE STATUS OF YOUR INDIVIDUAL SUBMISSION OF THIS FORM, WRITE DIRECTLY TO: U.S. Department of Education, Loans Financial Management Division, 7th & D Sts., SW, Washington, D.C. 20202-5455. INSTRUCTIONS: I. BORROWER SECTION 1. SOCIAL SECURITY NUMBER: Enter the social security number exactly as it appears on the student application for programs identified under III. CLAIM SECTION item #11. 2. NAME OF BORROWER: Enter the borrower's last name, first name, and middle initial. If the borrower's name has changed since the student application was submitted, enter the previous name in the space provided with parentheses, e.g., Jones, Mary A. (Smith). 3. TELEPHONE NUMBER: Enter the last telephone number of record, even if that number is known to be invalid. 4. LAST KNOWN ADDRESS: Enter the last address of record, even if that address is known to be invalid. II. LENDER SECTION 5. LENDER ID NUMBER: Enter the lender's six-digit identification number that was assigned by Education. 6. LENDER'S NAME: Enter the lender's full name. 7. LENDER TELEPHONE NUMBER: Enter the contact person's telephone number, including the area code. 8. LENDER'S ADDRESS: Enter the lender's full mailing address. 9. CONTACT PERSON: Enter the individual who would be able to respond to any inquiries regarding this claim submission. III. CLAIM SECTION 10. CLAIM REASON: Enter an "X" in the appropriate box. Please insure that documentation supporting the claim reason is attached to the claim. 11. LOAN TYPE: Enter an "X" in the appropriate box. Please insure that documentation supporting the loan type is attached to the claim. 12. DATE STUDENT CEASED AT LEAST HALF-TIME STUDY: Enter the month, day and year. This item may not be left blank. If the borrower is still in school insert the words "IN SCHOOL" in the space provided for the date. (It is possible to have bankruptcy and default claims for nonpayment of interest on nonsubsidized loans during the in school or grace period). 13. DATE GRACE PERIOD ENDS: Enter the date the borrower's grace period ended. 14. DATE FIRST PAYMENT DUE: Enter the exact date that the first payment was due in the six digit MMDDYY format (i.e., March 25, 1994 - 032594). 15. DUE DATE OF MOST DELINQUENT PAYMENT: Enter the due date of the most delinquent payment. 16. LAST DATE INTEREST WAS PAID OR CAPITALIZED: Enter the date, if any, through which interest was paid by the borrower, capitalized, or subsidized by the Federal Government. this field can be left blank if no activity has occurred since the account was converted into repayment status. 17. GUARANTOR'S NAME AND ADDRESS: Enter the name and full address of the last Guarantee Agency. 18. TELEPHONE NUMBER: Enter the guarantor's telephone number, if available. IV. LOAN INFORMATION 19. DATE OF DISBURSEMENT: Enter the actual date the loan or any portion of the loan was disbursed, not the date on the promissory note. IF there was more than one disbursement, list all disbursements. 20. AMOUNT OF DISBURSEMENT: Enter the gross amount of each disbursement that corresponds to each date listed in #19 above. The amount reported must be the amount listed on the promissory note, prior to any deductions for insurance premiums and origination fees. The total amount disbursed must not exceed the sum of the commitment amount reflected on the student application. 21. ANNUAL INTEREST RATE: Enter the amount shown on the promissory note. The rate is not affected by any administrative cost allowance or special allowance that may have been paid to the lender. 22. AMOUNT OF CAPITALIZED INTEREST: Enter the total amount of interest that has been capitalized under program regulations. Capitalized interest is that interest which has been accrued and then added to the previously unpaid principal balance. 23. UNPAID PRINCIPAL BALANCE: Enter the unpaid principal balance. Note: This balance is net of any interest, except capitalized interest. V. COSIGNER/ENDORSER INFORMATION 24. NAME OF COSIGNER: Enter the cosigner/endorser's last name, first name, and middle initial. If the cosigner/endorser's last name has changed, enter the previous name in the space provided. 25. TELEPHONE NUMBER: Enter the last telephone number of record even if that number is known to be invalid. 26. ADDRESS: Enter the last address of record, even if that address is known to be invalid. 27. Please use the description from #24. 28. Please use the description from #25. 29. Please use the description from #26. 30. SIGNATURE OF THE OFFICER: The signature of the individual submitting the claim for payment. 31. TYPED NAME & TITLE: Enter the name and title of the individual submitting the claim for payment. 32. DATE OF APPLICATION FOR INSURANCE CLAIM: Enter the date the claim is submitted for payment. |