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(GEN-03-13) Approval of the Federal Consolidation Loan Application and Promissory Note and Related Documents for use in the Federal Family Education Loan Program

Publication Date: Novermber 25, 2003

DCL ID: GEN-03-13

Approval of the Federal Consolidation Loan Application and Promissory Note and Related Documents for use in the Federal Family Education Loan Program


Posted on 11-25-2003

November 2003

GEN-03-13

G-03-349

L-03-243

Subject: Approval of the Federal Consolidation Loan Application and Promissory Note and Related Documents for use in the Federal Family Education Loan Program

Dear Partner:

The attachments to this letter contain the revised Federal Consolidation Loan Application and Promissory Note and related documents that have been approved by the Office of Management and Budget (OMB). The attached documents include the:

  • Federal Consolidation Loan Application and Promissory Note, (standard is Attachment A, lender specific is Attachment B), related instructions and Borrower's Rights and Responsibilities Statement
  • Additional Loan Listing Sheet (Attachment C)
  • Federal Consolidation Loan Verification Certificate and related instructions (Attachment D)
  • Request to Add Loans to a Federal Consolidation Loan and related instructions (Attachment E)

Based on previous requests, all of the forms are now letter size. The Federal Consolidation Loan Application and Promissory Note is now nine pages, with the Borrower Certifications, Authorizations, and Understandings moved before the signature lines on page four.

Implementation and Transition of New Forms

The Federal Consolidation Loan documents have been approved by OMB under control number 1845-0036. The expiration date is October 31, 2006. Program participants may begin using the new forms immediately. Beginning June 1, 2004 only the new forms may be provided to borrowers. Lenders may, however, process the prior version of the Federal Consolidation Loan Application and Promissory Note if that form is received after June 1, 2004.

Production Instructions

As with the prior version, the Department is providing two options for producing the Federal Consolidation Loan Application and Promissory Note:

Lenders and guarantors may use the standard form, which includes a brief explanation of the mandated borrower repayment options. The repayment plans listed in Section E of the application/note and in the corresponding instructions include: standard repayment, graduated repayment, income-sensitive repayment and extended repayment.

Lenders and guarantors may also use customized forms for Section E of the application and promissory note with its corresponding instructions. This section must include information on the mandated repayment plans and may also include information on any customized plans offered by the lender.

The second option allows lenders that offer custom repayment plans to include information on these plans within the application packet.

The Department prescribes all language, application data items, and promissory note terms and conditions on the Federal Consolidation Loan Application and Promissory Note and related forms. Lenders and guaranty agencies are not allowed to make changes to, deletions from, or additions to the prescribed and approved language or format, except that a lender or guarantor may use the boxes in the upper right corners of the forms to provide identifying information, a logo and coding (e.g., for barcoding for filing and processing). Guarantors, programs, or lenders may also use coding in other places (e.g., the side or bottom margins) to meet their individual processing system needs. In addition, the Borrower's Rights and Responsibilities Statement may be enhanced by printing in color.

As is the case today, lenders and guarantors are permitted to provide supplemental or wraparound materials along with the common forms. Examples of information that are often included in the supplemental materials are: lender or guarantor-specific lending policies, application routing instructions, and additional information on the repayment plans. The Department encourages lenders and guarantors to include sample repayment schedules for each of the repayment plans available within the lender or guarantor's program

Obtaining Copies for Reproduction

These documents are available in PDF format on the Department's IFAP website (ifap.ed.gov) and 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.

Sincerely,

Jeff Baker, Director
Program Development Division

Federal Student Assistance

Attachments:

Federal Consolidation Loan Application and Promissory Note (standard form)

Federal Consolidation Loan Application and Promissory Note (custom form)

Request to Add Loans to a Federal Consolidation Loan

Additional Loan Listing Sheet for Federal Consolidation Loan Application and Promissory Note

Federal Consolidation Loan Verification Certificate

Attachments/Enclosures:

Last Modified: 11/24/2003