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(CB-02-10) (CB-02-10) Approval of Loan Discharge Applications Forms

Publication Date: June 2002

DCL ID: CB-02-10

Approval of Loan Discharge Applications Forms


June 2002

GEN-02-05
CB-02-10
G-02-336
L-02-230

Subject: Approval of Loan Discharge Application Forms

Dear Partner:

The attachments to this letter contain revised OMB approved loan discharge application forms for use in the Title IV student loan programs - the Federal Family Education Loan (FFEL) Program, the William D. Ford Federal Direct Loan (Direct Loan) Program, and the Federal Perkins Loan (Perkins Loan) Program. Each form reflects the unique federal requirements pertaining to its specific loan discharge as follows:

  • Loan Discharge Application: School Closure - Used by borrowers in all three Title IV loan programs (FFEL, Direct Loan, and Perkins Loan) who were unable to complete their program of study because their school closed.
  • Loan Discharge Application: False Certification of Ability to Benefit - Used by borrowers in the FFEL and Direct Loan programs whose ability to benefit was falsely certified by their school.
  • Loan Discharge Application: False Certification (Disqualifying Status) - Used by borrowers in the FFEL and Direct Loan programs whose eligibility was falsely certified by their school due to a disqualifying status or condition of the student.
  • Loan Discharge Application: Unauthorized Signature/Unauthorized Payment - Used by borrowers in the FFEL and Direct Loan programs when there was an unauthorized signature/endorsement or unauthorized payment by the school.

Implementation and Transition to New Forms

Program participants may begin distributing these revised approved forms immediately, however beginning August 15, 2002 only the new forms may be provided to borrowers. The earlier discharge application forms may be processed after that date.

Imaging Technology

Each of the enclosed loan discharge application forms requests the borrower to complete and sign the form in ink. This request is made to accommodate imaging technology that may be used by a program participant. However, consistent with the use of other common FFEL and Direct Loan forms, a pencil signature does not invalidate the form.

Printing Instructions

The enclosed forms must be printed using black ink on white paper. The typeface, point size, and general presentation of the forms may not be changed. The program names appear in the header of each form. While a program participant may change the order of the program names, the names of the other program(s) must remain on the form.

Program participants should pre-print their name and address and provide a contact number for borrowers to call in the boxes provided for that purpose in Section 8 on page 2 of the forms.

Space at the top, bottom, or sides of the forms may be used for bar coding purposes.

Obtaining Copies for Reproduction

These forms are available in PDF format as Attachments to this letter. In addition, the forms are available on the National Council of Higher Education Loan Programs (NCHELP) web site at www.nchelp.org.

Guaranty agencies and Perkins school lenders are responsible for ensuring that the forms they use are identical to the forms approved by the Secretary. No changes may be made to the forms except those expressly authorized above.

Sincerely,


Jeff Baker, Director
Program Development Division
Federal Student Aid


Attachments:

Loan Discharge Application: School Closure
Loan Discharge Application: False Certification of Ability to Benefit
Loan Discharge Application: False Certification (Disqualifying Status)
Loan Discharge Application: Unauthorized Signature/Unauthorized Payment

Attachments/Enclosures:

Last Modified: 06/20/2002