July 19, 2002
Volume 2002 - Issue 30

 

Loan Discharge Application Forms

    The U.S. Department of Education (ED) recently released Dear Colleague Letter (DCL), GEN-02-05, approving Loan Discharge Application forms to be used for the Title IV 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.
    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.

    Copies of GEN-02-05 and attachments are available on ED's web site at www.ifap.ed.gov/IFAPWebApp/index.jsp.  If you are unable to access ED's website and would like a hard copy, please contact Stacey Fabros at (801) 321-7211.  Any questions regarding this Bulletin should be directed to the UHEAA Policy and Training Department at (801) 321-7166 or by e-mail to mjohnson@utahsbr.edu.