| Publication Date: March 2007 DCL ID: FP-07-03 Subject: Approved Federal Consolidation Loan Application and Promissory Note Summary: This letter announces approval of the revised Federal Consolidation Loan Application and Promissory Note, and related documents, for use in the Federal Family Education Loan Program. Posted on 03-12-2007 Dear Colleague: 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 following documents are attached: Attachment A - Federal Consolidation Loan Application and Promissory Note - Standard Version Includes instructions for completing the App/Note and the Borrower's Rights and Responsibilities Statement Attachment B - Federal Consolidation Loan Application and Promissory Note - Custom Version Includes instructions for completing the App/Note and the Borrower's Rights and Responsibilities Statement Attachment C - Additional Loan Listing Sheet Attachment D - Request to Add Loans to a Federal Consolidation Loan, including instructions Attachment E - Federal Consolidation Loan Verification Certificate, including instructions Implementation and Transition of New Forms OMB has approved these Federal Consolidation Loan documents under control number 1845-0036. The expiration date is January 31, 2010. Program participants may begin using the new forms immediately. Beginning October 1, 2007 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 (Application/Promissory Note) if that form is received by the lender after October 1, 2007. Production Instructions As with prior version of these forms, the U.S. Department of Education (the Department) is providing two options for producing the Application/Promissory Note: the standard version and the custom version. Lenders and guarantors may use either version. The standard version of the Application/Promissory Note includes a brief explanation, in Section E, of the mandated borrower repayment options. The repayment options listed in Section E and in the corresponding instructions are: Standard Payments, Graduated Payments, Income-Sensitive Payments, and Extended Payments. The custom version of the Application/Promissory Note allows lenders and guarantors that offer custom repayment plans to include information on these plans in Section E and in the corresponding instructions. Lenders that choose to use the custom version of the Application/Promissory Note must also provide information on the four mandated borrower repayment options in Section E and in the corresponding instructions. The Department prescribes all language, application data items, and promissory note terms and conditions on the Application/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 bar coding 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 may often be included in 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 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 Attachments/Enclosures: |