Federal Student Aid - IFAP
   

Publication Date: November 9, 2007

DCL ID: GEN-07-08
FP-07-10
CB-07-15

Subject: Approval of Loan Discharge Application for Spouses and Parents of September 11, 2001 Victims

Summary: This letter announces the approval of a new loan discharge application for use by borrowers in the Federal Family Education Loan (FFEL), William D. Ford Federal Direct Loan (Direct Loan), and Federal Perkins Loan (Perkins Loan) programs who are the spouses or parents of eligible public servants or other eligible victims of the September 11, 2001 terrorist attacks.

Posted on 11-09-2007

Dear Colleague:

As we previously announced in DCL GEN-06-21, the Third Higher Education Extension Act of 2006 (the THEEA), Public Law 109-292, authorized the discharge of the outstanding balance of certain FFEL, Direct Loan, and Perkins Loan program loans made to the spouses or parents of eligible public servants and other eligible victims of the September 11, 2001 terrorist attacks. Interim final regulations implementing this new loan discharge provision were published in the Federal Register on December 28, 2006 (71 FR 78075). Final regulations were published on September 28, 2007 (72 FR 55049).

The loan discharge benefit created by the THEEA is available only for FFEL, Direct Loan, and Perkins Loan program loans on which amounts were owed on September 11, 2001, and on which amounts are still owed on the date the discharge is requested. The THEEA does not authorize the refunding of any payments that a borrower made on a loan prior to the loan discharge date.

The Office of Management and Budget (OMB) has approved a new loan discharge application under OMB No. 1845-0079 (Loan Discharge Application: Spouses and Parents of September 11, 2001 Victims) to be used by eligible FFEL, Direct Loan, and Perkins Loan borrowers to apply for the new loan discharge.

Implementation of the New Loan Discharge Application

The attached Loan Discharge Application: Spouses and Parents of September 11, 2001 Victims may be made available to borrowers for immediate use. FFEL Program participants and Perkins Loan schools must make the new loan discharge application available to borrowers no later than January 31, 2008. Requests for the new loan discharge made by borrowers using other means that were in place before January 31, 2008 may continue to be processed after that date.

Printing Instructions and Imaging Technology

The attached form must be printed with black ink on white paper. The typeface, point size, and general presentation of the form may not be changed from the OMB-approved form. No changes to, deletions from, or additions to the approved language on the form are allowed, except that the order of the loan program names that appear throughout the form (Federal Family Education Loan Program, William D. Ford Federal Direct Loan Program, and Federal Perkins Loan Program) may be changed depending on the program for which the form is being used. The blank spaces at the top, bottom, or sides of the form may be used for bar coding.

To accommodate imaging technology, the instructions tell the borrower to complete and sign the form in ink. However, a pencil signature does not invalidate the form.

Obtaining Copies for Reproduction

The Loan Discharge Application: Spouses and Parents of September 11, 2001 Victims is available in PDF and Microsoft Word format as attachments to this letter. In addition, the form is also available on the National Council of Higher Education Loan Programs (NCHELP) web site at www.nchelp.org.

Sincerely,

Jeff Baker, Director
Policy Liaison and Implementation
Federal Student Aid

Attachments/Enclosures:

GEN-07-08: Loan Discharge Application in Microsoft Word, 216KB, 4 pages

GEN-07-08: Loan Discharge Application in PDF Format, 87KB, 4 pages