Joint Consolidation Loan Separation Application

Loan Verification Certificate for Combined Application to Separate a Joint Consolidation Loan and Direct Consolidation Loan Promissory Note William D. Ford Federal Direct Loan Program

OMB No. 1845-NEW Form Under Review Exp. Date XX/XX/XXXX

The borrower identified in Item 3 of this Loan Verification Certificate (LVC) has applied to separate a joint Direct Consolidation Loan or joint Federal Consolidation Loan into a new Direct Consolidation Loan. The U.S. Department of Education (ED) has identified you as the holder of that joint consolidation loan. The Joint Consolidation Loan Separation Act (Public Law 117-200) authorizes joint consolidation loan co-borrowers to apply to separate a joint consolidation loan into individual Direct Consolidation Loans. In this LVC, the term “borrower” refers to the joint consolidation loan co-borrower who has applied to separate the joint consolidation loan, and the term “co-borrower” refers to the current or former spouse of the borrower with whom the borrower currently owes the joint consolidation loan. This LVC is used to verify the eligibility and payoff amount of the joint consolidation loan that the borrower has applied to separate. As part of the Application to Separate a Joint Consolidation Loan and Direct Consolidation Loan Promissory Note, the borrower named in Item 3 has authorized your disclosure of information regarding the joint consolidation loan that you hold.

Pursuant to 34 CFR 685.220(f)(1)(i), you must complete and return this LVC within 10 business days of the date received. Return the completed LVC to the following address:

[Insert Servicer ADDRESS Here]

Carefully read the instructions on pages 3 and 4 before completing the LVC. If you have questions or need help completing the LVC, call [SERVICER CONTACT NUMBER].

1. Holder/Servicer Information Holder/Servicer is (check only one): Lender Servicer for Lender Guaranty Agency Servicer for Guaranty Agency School Servicer for School Name ____________________________ OPE Code _________________________ Street 1 ___________________________ Street 2 ___________________________ City, State _________________________ Zip Code __________________________ Phone ____________________________ Fax ______________________________

2. Institution/address to which payoff should be sent (if different from Item 1) Name ____________________________ OPE Code _________________________ Street 1 ___________________________ Street 2 ___________________________ City, State _________________________ Phone ____________________________ Fax ______________________________ Contact Name _____________________

3. Borrower Information Name ____________________________ SSN ______________________________ Street 1 ___________________________ Street 2 ___________________________ City, State _________________________ Zip Code __________________________ Phone ____________________________

4. Co-Borrower Information Name ____________________________ SSN ______________________________ Date of Birth _______________________

5. Holder/Servicer Certification: I certify that:

• To the best of my knowledge and belief, the information on this LVC is accurate and complete;

• The loan identified in Item 7 of the Loan Information table below (a) is a legal, valid, and binding obligation of the borrower; and (b) was made and serviced in compliance with all applicable laws and regulations.

• The loan amount listed in Item 19 of the Loan Information table below is the amount necessary to discharge the loan. ED will rely on this LVC in paying off the listed loan.

Signature of Authorized Official ____________________________________ Holder/Servicer Name _____________________________ Date (mm-dd-yyyy) _______________

Name/Title of Authorized Official (please print) _____________________________________________________________ Area Code/Telephone # ______________________

6. Certification Date (mm-dd-yyyy) ____________________________________

Loan Information

7. Loan ID	8. Loan Type	9. Interest Rate (%)	10. Principal Balance Outstanding	11. Unpaid Interest through Certification Date (Item 6)	12. Fees and Late Charges	13. Collection Costs	14. Total Amount Due for Borrower’s Portion through Certification Date (Item 6)	15. First/Only Disbursement Date	16. Loan Status Code	17. Total Months Toward IBR Forgiveness (see instructions)
					18. Total Payoff Amount

19. Comments ____________________________________________________________________________________________________________________________________________________

Instructions for completing the Loan Verification Certificate for Application to Separate a Joint Consolidation Loan

The borrower named in this Loan Verification Certificate (LVC) has applied for a Direct Consolidation Loan to repay the borrower’s portion of a joint Direct Consolidation Loans or a joint Federal Consolidation Loan. The U.S. Department of Education (ED) has identified a joint consolidation loan you hold or service as a loan to be consolidated. As part of the process for separating a joint consolidation loan into an individual Direct Consolidation Loan, each loan holder/servicer identified by ED must complete this LVC. After receiving the LVC from you and determining that the loan is eligible for consolidation, ED will pay off the borrower's portion of the joint consolidation loan to you using the information you provide on this LVC or, if you do not return this LVC by the specified deadline, by using information from ED’s National Student Loan Data System (NSLDS).

Before paying off the borrower’s loan, ED will send the borrower a notice that provides information about the loan and the payoff amount that has been verified, and informs the borrower of the deadline for notifying ED if they want to cancel their application for the Direct Consolidation Loan, or do not want to consolidate the loan listed in the notice.

Upon receipt of payment from ED, you must notify the borrower that the loan that was with you has been paid in full. An overpayment from ED or any payments you receive from the borrower after you receive ED's payment must be sent to ED for application to the borrower's Direct Consolidation Loan. If the borrower contacts you about their account while the Direct Consolidation Loan application is in process, you should tell the borrower to continue to make regularly scheduled payments on the loan to avoid default, unless they have been granted a deferment or forbearance.

You must complete and return this certificate within 10 business days of the date received to the address provided on page 1 of this LVC.

Holder/Servicer Instructions:

Some of the information may be preprinted. Enter dates as month-day-year (mm-dd-yyyy). Use only numbers. Example: June 1, 2024 = 06-01-2024.

Item 1: Enter or correct the holder/servicer information.

Item 2: If the payoff check should be sent to a different institution and/or address than that in Item 1, enter the requested information.

Item 3: Enter or correct the borrower’s full name, Social Security Number (SSN), current address, and current area code/phone number.

Item 4: Enter or correct the joint consolidation loan co-borrower’s full name, SSN, and date of birth.

Item 5: Sign, date, and provide the other requested information.

Item 6: Enter the date you complete this certificate.

Note: If you are no longer the holder/servicer of the listed loan, indicate in Item 19 the new holder/servicer, if known.

Loan Information table

Item 7: Enter the Loan ID assigned to the loan or component of the loan (subsidized or unsubsidized) for which you are the holder/servicer.

Item 8: Enter the loan type, using the codes shown in the chart on page 4.

Item 9: Enter the annual interest rate (percent) in effect for the loan as of the certification date. If this rate is different from the statutory interest rate for the loan, enter the rate that is in effect as of the certification date, not the statutory interest rate.

Item 10-13: Provide the payoff amount for the loan, which is the sum of the following, as of the certification date in Item 6:

Item 10: Portion of the current outstanding principal balance of the joint consolidation loan (including capitalized interest) that is attributable to the borrower identified in Item 3 (“borrower’s portion of the joint consolidation loan”), as determined by multiplying the total current outstanding principal balance of the loan by the percentage of the original joint consolidation loan amount that was attributable to the individual loans of the borrower that were repaid by the joint consolidation loan at the time the loan was made.

Item 11: Unpaid accrued interest attributable to the borrower’s portion of the joint consolidation loan through certification date

Item 12: Unpaid fees and late charges attributable to the borrower’s portion of the joint consolidation loan, if applicable (as authorized by ED’s regulations)

Item 13: Unpaid collection costs attributable to the borrower’s portion of the joint consolidation loan, if applicable (as authorized by ED’s regulations)

Item 14: Enter the total payoff amount due for the borrower’s portion of the joint consolidation loan (total of amounts listed in Items 10 through 13).

Item 15: Enter the first, or only, disbursement date for the loan.

Item 16: Enter the current status of the loan using the status codes from the list on this page.

Item 17: Complete Item 17 only if the loan you hold is a joint Federal Consolidation Loan (loan type J or O). Otherwise, leave Item 17 blank. For loan types J or O, enter the total number of months during which the borrower (a) on or after July 1, 2009, made a payment on the joint Federal Consolidation Loan under the Income-Based Repayment (IBR) Plan, the Standard Repayment Plan based on a 10-year repayment period, or any other repayment plan if the payment amount was not less than an amount calculated for a 10-year repayment period based on the loan balance outstanding when the borrower entered repayment on the joint consolidation loan; or (b) on or after July 1, 2009, received an economic hardship (HRD) deferment on the joint Federal Consolidation Loan.

Item 18: Enter the total payoff amount due to the holder/servicer shown on this LVC.

Item 19: Enter any appropriate comments. If unable to complete this LVC, please provide an explanation here.

Note: When the consolidation process is complete, we will send the entity listed in Item 1 or 2 payment for the sum of the principal, interest, and allowable collection costs and fees. We will send a guaranty agency payment for allowable collection costs and fees. However, the guaranty agency’s principal and interest balances will be accounted for by Treasury form SF 1081.

Loan Status Codes

Code	Loan Status
BA	Bankruptcy
DE	Deferment
DI	Currently Subject to Judgment or Wage Garnishment Order
FB	Forbearance
OT	Other (explain in Item 20)
PF	Paid in Full
RP	Repayment
TR	Transferred to Another Servicer

Loan Type Codes

Code	Loan Type
E	Direct Subsidized Consolidation Loans
J	Unsubsidized Federal Consolidation Loans
K	Direct Unsubsidized Consolidation Loans
O	Subsidized Federal Consolidation Loans
V	Direct PLUS Consolidation Loans

Paperwork Reduction Notice

According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless the collection displays a valid OMB control number. The valid OMB control number for this information collection is 1845-NEW. Public reporting burden for this collection of information is estimated to average 9 minutes (0.15 hours) per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. The obligation to respond to this collection is mandatory in accordance with 20 U.S.C. 1087e(g)(2)(A)(i).

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