Summary: This letter provides guidance relating to the filing of the Lender's Application for Payment of Insurance Claim (ED Form 1207).
SUBJECT: This letter provides guidance relating to the filing of the
Lender's Application for Payment of Insurance Claim
(ED Form 1207).
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
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.
and Financial Management Service
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.
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
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
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
23. UNPAID PRINCIPAL BALANCE: Enter the unpaid principal
balance. Note: This balance is net of any interest, except
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
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.