Loan Discharge Application: School Closure

L OMB No. 1845-0015 Form Approved Exp. Date xx/xx/xxxx OAN DISCHARGE APPLICATION: SCHOOL CLOSURE Federal Family Education Loan Program / William D. Ford Federal Direct Loan Program / Federal Perkins Loan Program WARNING: Any person who knowingly makes a false statement or misrepresentation on this form or on any accompanying documents will be subject to penalties which may include fines, imprisonment or both, under the U.S. Criminal Code and 20 U.S.C. 1097.

SECTION 1: BORROWER IDENTIFICATION

Please enter or correct the following information. SSN |__|__|__|-|__|__|-|__|__|__|__|

Name

Address

City, State, Zip Code

Telephone – Home ( )

Telephone – Other ( )

E-mail (optional)

SECTION 2: STUDENT INFORMATION

Before completing this section, carefully read the entire form, including the instructions, definitions, and terms and conditions in Sections 4, 5, and 6 on this form. If you are a student borrower applying for loan discharge, begin with Item 3. If you are a parent borrower applying for a PLUS loan discharge, begin with Item 1.

1. Student Name (Last, First, MI):

2. Student SSN: |__|__|__|-|__|__|-|__|__|__|__|

3. Closed School Name:

4. Date school closed (if known): |__|__|-|__|__|-|__|__|__|__|

5. Closed School Address (street, city, state, zip code):

6. Dates of attendance at the closed school:

From |__|__|-|__|__|-|__|__|__|__| To |__|__|-|__|__|-|__|__|__|__|

7. Name of the program of study that you (or, for parent PLUS borrowers, the student) were enrolled in at the time the school closed:

8. Did you (or, for parent PLUS borrowers, the student) complete the program of study at the closed school? Yes No If No, check all reasons that apply: You (or, for parent PLUS borrowers, the student) were on an approved leave of absence when the school closed: From |__|__|-|__|__|-|__|__|__|__| To |__|__|-|__|__|-|__|__|__|__|

The school closed while you (or, for parent PLUS borrowers, the student) were still enrolled.

You (or, for parent PLUS borrowers, the student) withdrew from the school on:

|__|__|-|__|__|-|__|__|__|__|

Other (please explain):

9. Did you (or, for parent PLUS borrowers, the student) complete or are you in the process of completing the program of study or a comparable program of study at another school? Yes No If Yes, complete Item a) and b) below: (a) Did the other school give you (or, for parent PLUS borrowers, the student) credit for training received at the closed school by allowing transfer of credits or hours earned at the closed school, or by any other means? Yes No (b) Were you (or, for parent PLUS borrowers, the student) required to start the program of study over from the beginning at the other school? Yes No

10. Did the holder of your loan receive any money back (a refund) from the school on your behalf? Yes No Don’t Know

If Yes, give the amount and explain why the money was refunded:

11. Did you (or, for parent PLUS borrowers, the student) make any monetary claim with, or receive any payment from, the school or any third party (see definition in Section 5) in connection with enrollment or attendance at the school? Yes No Don’t Know If Yes, please provide the following information: (a) Name/address/telephone number of the party with whom the claim was made or from whom payment was received:

(b) Amount/status of claim:

(c) Amount of payment received: $

(Write “none” if no payment was received.)

SECTION 3: BORROWER CERTIFICATION

My signature below certifies that I have read and agree to the terms and conditions that apply to this loan discharge, as specified in Section 6 on the following page. Under penalty of perjury, I certify that all of the information I have provided on this form and in any accompanying documentation is true and accurate to the best of my knowledge and belief.

Borrower’s Signature:

Today’s Date:

SECTION 4: INSTRUCTIONS FOR COMPLETING THE APPLICATION
Type or print using dark ink. Enter dates as month-day-year (mm-dd-yyyy). Use only numbers. Example: June 24, 2006 = 06-24-2006. If you need more space to answer any of the items, continue on separate sheets of paper and attach them to this form. Indicate the number of the item(s) you are answering and include your name and social security number (SSN) on all attached pages. Sign and date the form, then send the completed form and any attachments to the address in Section 8.
SECTION 5: DEFINITIONS
 The Federal Family Education Loan (FFEL) Program includes Federal Stafford Loans (both subsidized and unsubsidized), Federal Supplemental Loans for Students (SLS), Federal PLUS Loans, and Federal Consolidation Loans.  The William D. Ford Federal Direct Loan (Direct Loan) Program includes Federal Direct Stafford/Ford Loans (Direct Subsidized Loans), Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans), Federal Direct PLUS Loans (Direct PLUS Loans), and Federal Direct Consolidation Loans (Direct Consolidation Loans).  The Federal Perkins Loan (Perkins Loan) Program includes Federal Perkins Loans and National Direct Student Loans (NDSL).  The date a school closed is the date that the school stopped providing educational instruction in all programs, as determined by the U.S. Department of Education (the Department).  The holder of a borrower’s FFEL Program loan(s) may be a lender, a guaranty agency, or the Department. The holder of a borrower’s Direct Loan Program loan(s) is the Department. The holder of a borrower’s Perkins Loan Program loan(s) may be a school or the Department.  Loan discharge due to school closure cancels the obligation of a borrower (and endorser, if applicable) to repay the remaining balance on a FFEL Program, Direct Loan Program, or Perkins Loan Program loan, and qualifies the borrower for reimbursement of any amounts paid voluntarily or through forced collection on the loan. For consolidation loans, only the amount of the underlying loans (the loans that were consolidated) that were used to pay for the program of study listed in Item 7 will be considered for discharge. The loan holder reports the discharge to all credit reporting agencies to which the holder previously reported the status of the loan.  The student refers to the student for whom a parent borrower obtained a Federal PLUS Loan or Direct PLUS Loan.  Dates of attendance: The “to” date means the last date that you (or, for parent PLUS borrowers, the student) actually attended the closed school.  Program of study means the instructional program leading to a degree or certificate in which you (or, for parent PLUS borrowers, the student) were enrolled.  Third party refers to any entity that may provide reimbursement for a refund owed by the school, such as a State or other agency offering a tuition recovery program or a holder of a performance bond.
SECTION 6: TERMS AND CONDITIONS FOR LOAN DISCHARGE BASED ON SCHOOL CLOSURE
 I received FFEL Program, Direct Loan Program, or Perkins Loan Program loan funds on or after January 1, 1986, to attend (or, if I am a parent PLUS borrower, for the student to attend) the school identified as “closed school” in Section 2 of this form. Those funds were either received by me directly, or applied as a credit to the amount owed to the school. I (or, if I am a parent PLUS borrower, the student) was enrolled at that school or on an approved leave of absence on the date that it closed, or withdrew from the school not more than 90 days before it closed (or longer if authorized by the Department). Due to the school’s closure, I (or, if I am a PLUS borrower, the student) did not complete the program of study at that school. I (or, if I am a parent PLUS borrower, the student) did not complete and am not in the process of completing that program of study or a comparable program at another school by transferring credits or hours earned at the closed school to another school, or by any other means by which I (or, if I am a parent PLUS borrower, the student) benefited from the training provided by the closed school.  I will provide, upon request, testimony, a sworn statement, or other documentation reasonably available to me that demonstrates to the satisfaction of the Department or its designee that I meet the qualifications for loan discharge based on school closure, or that supports any representation that I made on this form or on any accompanying documents.  I agree to cooperate with the Department or its designee regarding any enforcement actions related to my request for loan discharge.  I understand that my request for loan discharge may be denied, or my discharge may be revoked if I fail to provide testimony, a sworn statement, or documentation upon request, or if I provide testimony, a sworn statement, or documentation that does not support the material representations I have made, or if I (or, if I am a parent PLUS borrower, the student) completed or am in the process of completing the program of study or a comparable program at another school through transfer of credits or hours from the closed school or by any other means by which I (or, if I am a parent PLUS borrower, the student) benefited from the training provided by the closed school.  I further understand that if my loan(s) is discharged based on any false, fictitious, or fraudulent statements that I knowingly made on this form or on any accompanying documents, I may be subject to civil and criminal penalties under applicable federal law.  I hereby assign and transfer to the Department any right to a refund on the discharged loan(s) that I may have from the school identified in Section 2 of this form and/or any owners, affiliates, or assigns of the school, and from any third party that may pay claims for a refund because of the actions of the school, up to the amount discharged by the Department on my loan(s).
SECTION 7: IMPORTANT NOTICES
Privacy Act Disclosure Notice: The Privacy Act of 1974 (5 U.S.C. 552a) requires that the following notice be provided to you: The authorities for collecting the requested information from and about you are §421 et seq., §451 et seq. and §461 et seq. of the Higher Education Act of 1965, as amended (20 U.S.C. 1071 et seq., 20 U.S.C. 1087a et seq., and 20 U.S.C. 1087aa et seq.) and the authorities for collecting and using your Social Security Number (SSN) are §§428B(f) and 484(a)(4) of the HEA (20 U.S.C. 1078-2(f) and 20 U.S.C. 1091(a)(4)) and 31 U.S.C. 7701(b). Participating in the Federal Family Education Loan (FFEL) Program, the William D. Ford Federal Direct Loan (Direct Loan) Program, or the Federal Perkins Loan (Perkins Loan) Program and giving us your SSN are voluntary, but you must provide the requested information, including your SSN, to participate. The principal purposes for collecting the information on this form, including your SSN, are to verify your identity, to determine your eligibility to receive a loan or a benefit on a loan (such as a deferment, forbearance, discharge, or forgiveness) under the FFEL, Direct Loan, and/or Perkins Loan Programs, to permit the servicing of your loan(s), and, if it becomes necessary, to locate you and to collect and report on your loan(s) if your loan(s) become delinquent or in default. We also use your SSN as an account identifier and to permit you to access your account information electronically. The information in your file may be disclosed, on a case-by-case basis or under a computer matching program, to third parties as authorized under routine uses in the appropriate systems of records notices. The routine uses of this information include, but are not limited to, its disclosure to federal, state, or local agencies, to private parties such as relatives, present and former employers, business and personal associates, to consumer reporting agencies, to financial and educational institutions, and to guaranty agencies in order to verify your identity, to determine your eligibility to receive a loan or a benefit on a loan, to permit the servicing or collection of your loan(s), to enforce the terms of the loan(s), to investigate possible fraud and to verify compliance with federal student financial aid program regulations, or to locate you if you become delinquent in your loan payments or if you default. To provide default rate calculations, disclosures may be made to guaranty agencies, to financial and educational institutions, or to state agencies. To provide financial aid history information, disclosures may be made to educational institutions. To assist program administrators with tracking refunds and cancellations, disclosures may be made to guaranty agencies, to financial and educational institutions, or to federal or state agencies. To provide a standardized method for educational institutions to efficiently submit student enrollment status, disclosures may be made to guaranty agencies or to financial and educational institutions. To counsel you in repayment efforts, disclosures may be made to guaranty agencies, to financial and educational institutions, or to federal, state, or local agencies. In the event of litigation, we may send records to the Department of Justice, a court, adjudicative body, counsel, party, or witness if the disclosure is relevant and necessary to the litigation. If this information, either alone or with other information, indicates a potential violation of law, we may send it to the appropriate authority for action. We may send information to members of Congress if you ask them to help you with federal student aid questions. In circumstances involving employment complaints, grievances, or disciplinary actions, we may disclose relevant records to adjudicate or investigate the issues. If provided for by a collective bargaining agreement, we may disclose records to a labor organization recognized under 5 U.S.C. Chapter 71. Disclosures may be made to our contractors for the purpose of performing any programmatic function that requires disclosure of records. Before making any such disclosure, we will require the contractor to maintain Privacy Act safeguards. Disclosures may also be made to qualified researchers under Privacy Act safeguards. Paperwork Reduction Notice: According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless it displays a currently valid OMB control number. The valid OMB control number for this information collection is 1845-0015. The time required to complete this information collection is estimated to average 0.5 hours (30 minutes) per response, including the time to review instructions, search existing data resources, gather and maintain the data needed, and complete and review the information collection. If you have any comments concerning the accuracy of the time estimate(s) or suggestions for improving this application, please write to: U.S. Department of Education, Washington, DC 20202-4537. If you have questions regarding the status of your individual submission of this application, contact your loan holder (see Section 8).
SECTION 8: WHERE TO SEND THE COMPLETED LOAN DISCHARGE APPLICATION
Send the completed loan discharge application and any attachments to: (If no address is shown, return to your loan holder.)	If you need help completing this form, call:

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