60D Comment Response Table

JCL Separation 60D Comment Response Table_2024-04-08.pdf

Joint Consolidation Loan Separation Application

60D Comment Response Table

OMB: 1845-0182

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ICR Number 1845-NEW – Combined Application to Separate a Joint Consolidation Loan and Direct Consolidation Loan Promissory Note
60D Comment Response Table
60-DAY COMMENTS
ED-2024-SCC-0005
Comment Commenter Name
#

Comment

FSA Response

0004

Joseph Hall

I am unsure of the need to have 2 people who don't
live in your household listed as references. The loans
already exist, they are just being split. There is no
need for references. I have been paying on the loan
for 30 years as well as my Joint holder. We do not
need to let family and friends know or be involved in
this.

0005

Scott Carlson

It might help to provide guidance or instructions on
what constitutes a valid "settlement agreement"
under Section 19 of the form. For example, does it

Page 1 of 34

Note: Many of the comments submitted on this
collection pertain to general joint consolidation
separation policy issues or operational aspects of
implementing the Joint Consolidation Loan
Separation Act (JCLSA) and do not directly relate to
the content of the information collection. Generally,
we do not respond to these types of comments
here. However, additional guidance will be
published at a later date to address many of the
issues raised.
It is established practice for all federal student loan
promissory notes to require references. As explained
in the instructions, references may be contacted to
assist in locating the borrower if the Department is
unable to reach the borrower by other means.
References are used only for this purpose. They are
never held liable for repayment of the loan and are
not contacted as part of application process.
The application will be revised to provide further
guidance on what constitutes a valid settlement
agreement.

Change
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Yes

Comment

FSA Response

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only have to be signed by the borrowers, or does it
have to be notarized or witnessed.
0006

Brian H.

Reviewed the entire joint consolidation separation
document/application …great rough draft! Let’s get
this application up and running so we can get the
forgiveness we qualified for many years ago. Thank
you!

We appreciate the commenter’s support.

0007

Sarah Buell

"Under the joint application option, each joint
consolidation loan co-borrower applies for an
individual Direct Consolidation Loan. Unless the coborrowers agree on an alternate amount specified in
a divorce decree, court order, or settlement
agreement, each co-borrowers new individual Direct
Consolidation Loan will be made for an amount
equal to the co-borrowers' portion of the remaining
outstanding balance of the joint consolidation loan."

The comment is outside the scope of this
information collection.

A clarifying statement on the consequences of
separating the loans using an "alternate amount".
Example: Borrower A's portion of the joint
consolidation loan is 90% and will be eligible for
PSLF. Borrower B is not eligible for PSLF and his
portion is 10%. Borrowers' divorce degree holds
Page 2 of 34

Comment

FSA Response

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borrower A responsible for all debt. Can the loans be
separated and then Borrower A take responsibility
for both loans, would borrower A have one
consolidation loan? What is the impact on PSLF
eligibility?
0008

Brian Hardison

I’ve read twice ….I can’t find previous payments
made on “joint federal consolidation loans” are
counted toward 10 yr PSLF after consolidation into
new direct federal loan. It does state ..previous
payments made on “joint direct consolidation loan”
will count toward 10 yr PSLF after consolidation into
new direct federal loan. Almost all of us have the
FFEL (joint federal consolidation loan) We are under
the impression that if we made 10 yrs of payments
on our joint federal consolidation loans that would
count toward PSLF in the new direct federal loan.

The Department has already provided guidance that
joint consolidation loan borrowers with
commercially-held Federal Family Education Loans
(FFEL) will receive retroactive application of the onetime income-driven repayment account adjustment
once the separation process is implemented and the
borrower or borrowers apply for separation and
reconsolidation into the Direct Loan program. These
borrowers will likewise receive credit towards Public
Service Loan Forgiveness (PSLF) if the borrower was
otherwise eligible. Because this is a one-time benefit
that will not apply going forward, it is not described
in the combined application and promissory note.

0009

Dawn Marie Hayes

I see the following language in item #7 in the
Department of Education's blog here:
https://blog.ed.gov/2023/12/seven-things-to-knowabout-the-student-loan-payment-count-adjustment/

The comment is outside the scope of this
information collection.

Page 3 of 34

Comment

FSA Response

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The Joint Consolidation Loan Separation Act
provides for a non-proportional separation of the
joint consolidation loan debt in accordance with a
divorce decree, court order, or separation
agreement only in the case of a joint application

"Borrowers with joint consolidation loans managed
by the Department are eligible for the adjustment
and are being processed for forgiveness if the loans
meet the threshold of 20 or 25 years’ worth of
qualifying payments. Borrowers with FFEL joint
consolidation loans that are commercially managed
will have their payment count adjusted when they
split their loan into a Direct Consolidation Loan, even
if the split occurs after the adjustment is complete."
I respectfully urge the DOE to apply the principle of
retroactivity to the JCLS borrowers who had become
eligible for PSLF while their loans were in legal
limbo, granting them refunds of their overpayment
from the date they otherwise had become eligible.
Please, please consider doing this. It is the right
thing to do.
0010

Joshua Cohen

Why can't a person applying under box #20 use a
divorce decree? Why is the divorce decree only used
if both parties apply (box #19)? There is a reason
these folks are divorced, and it is likely that many
don't speak anymore. They have a legally binding
agreement ordered through a state court.
Page 4 of 34

Comment

FSA Response

It is suggested that 19 be stricken and that the
existing 18 and 20 have a sub box to check that
requests the loan be split pursuant to a "divorce
decree, court order, or settlement agreement"
which is then attached to the application. There's no
reason to complicate things and make the divorce
decree a separate issue. It is a sub issue.

where both co-borrowers have submitted
separation applications.

Also, if box 18 is checked, that the request is joint,
why not have both parties sign the same
application? Why make your servicers match up
paperwork that could be received weeks apart? If
the couple is married, or even divorced but still
amicable enough to communicate, it's easy enough
for them to sign one document and be done.
0011

Gregg Betheil

While it is encouraging to finally see progress on
development of the separation application after
over 460’ days since the law past, you also have an
obligation to address accrued interest in the
intervening time since the law was passed. As this
was an administrative delay and the USDOE was
negligent in directing servicers to grant noncapitalizing administrative forebearance on Joint
Page 5 of 34

Change
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If box 18 or box 19 is checked, each joint
consolidation loan co-borrower must sign and
submit a separate Combined Application to Separate
a Joint Consolidation Loan and Direct Consolidation
Loan Promissory Note. This is because following the
separation of the joint debt, each individual will
have a new consolidation loan for which that
individual alone is liable, and the combined form
serves as that individual’s legal agreement to repay
the new consolidation loan. Therefore, it would not
be possible to have both borrowers sign the same
application and promissory note.
The comment is outside the scope of this
information request.

Comment

FSA Response

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Both joint consolidation loan co-borrowers are not
required to sign the same application to separate
the joint consolidation loan. If both co-borrowers
apply to separate the joint debt, each co-borrower
signs a separate application. It is also possible for
just one of the co-borrowers to apply to separate
the joint debt without an application from the other
co-borrower, if the applying co-borrower certifies
that they have experienced economic abuse or
domestic violence by the co-borrower, or that they
are unable to reach or access the loan information
of the of the other co-borrower.

loans pending the availability of a separation
application, even though such guidance was
available on studentaid.gov, the proposed process
should now be explicit that any accrued interest will
be cancelled and any payments made since October
11, 2022 will be refunded if eligible to PSLF or other
forgiveness programs.
0012

Anonymous

It is nice to see progress on the application but I
agree with other comments, it is not going fast
enough. Loan service providers are not allowing
loans be placed in forbearance due to this act.
Mohela has declined forbearance because they
don't have guidance on how to do it even though I
have indicated I want my loan separated with the
Ombudsman group.
As for the application, I think it is very challenging to
require both parties apply for the separation. Most
divorces are not amicable and one person should
not be stuck with a consolidation loan if an ex
spouse refuses to apply for separation. Especially
when one borrower has no access to the account

Page 6 of 34

It is established practice for all federal student loan
promissory notes to require references. As explained
in the instructions, references may be contacted to

Comment

FSA Response

because it is solely under one borrowers name with
the servicer.

assist in locating the borrower if the Department is
unable to reach the borrower by other means.
References are used only for this purpose. They are
never held liable for repayment of the loan and are
not contacted as part of application process.

Also, with PSLF what if the loan is separated by a
divorce decree and the percentage is higher than
what would be forgiven under PSLF for that
borrower? Is the whole amount for that borrower
forgiven based on the divorce decree or the amount
the borrower originally had?

Change
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The other comments are outside the scope of this
information collection.

Lastly, asking for references on a loan that
borrowers have had for 20 plus years is ridiculous.
0013

Lisa YamagataLynch

I am happy to see the progress for JCLS.
Comment 1: I see others commented on this, but
unless it is legally required, it is not clear why there
is a need for references in the application. People
who have joint consolidated loans are individuals
who consolidated before the middle of 2006 when it
became outlawed. The youngest possible individual
with JCL would be 40 years old at the current time,
and most of us are in our 50s, 60s, and even 70s and
higher.

Page 7 of 34

It is established practice for all federal student loan
promissory notes to require references. As explained
in the instructions, references may be contacted to
assist in locating the borrower if the Department is
unable to reach the borrower by other means.
References are used only for this purpose. They are
never held liable for repayment of the loan and are
not contacted as part of application process.
The application does not request information about
the co-borrower’s employer because that
information would be collected on the separate

Comment

FSA Response

Comment 2: If asking for borrower employer, would
it be a good idea to ask for employer information for
the co-borrower?

application submitted by the co-borrower (if both
co-borrowers apply to separate the joint debt).

Comment 3: While I understand that it will not apply
for all potential applicants, but it will for many, why
not have some explanation for FFEL JCL holders who
applied for PSLF during the limited waiver period. It
can even be a link to a website for people who fit in
that category. A little instructions on which
repayment plan for them to apply if they are seeking
PSLF through the limited waiver, which they already
applied to and are on hold would be great.
For the limited wavier, I believe we were instructed
that it did not matter what repayment plan we
chose. Does that hold true for this application, or
somehow not making the "correct choice" in this
Application disqualify those who already followed
direction at the time of the limited wavier.
All instructions that FFEL JCL holders who qualified
for the limited PSLF waiver have received in the past
have been unfairly unclear. I understand that having
all that information on the set of instructions for this
Page 8 of 34

The one-time income-driven repayment account
adjustment is a limited benefit that joint
consolidation loan borrowers will receive after
separation and consolidation. The Public Service
Loan Forgiveness (PSLF) limited waiver is also a
limited benefit that only borrowers who met specific
requirements will benefit from. Because these are
only temporary benefits, they are not discussed on
the application.

Change
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Comment

FSA Response

form does not make sense, but if it can lead us to a
website that lays out clearly how to coordinate
different scenarios based on what we have already
done would be most helpful. Not all, but there are
number of individuals who qualified for the PSLF
limited waiver who are victims of domestic abuse.
There is no need to add to the burden they are
carrying every day trying to get their loan separated
and gain financial freedom from their abusive
divorced partners.
Alternatively, FSA already has information for FFEL
JCL holders who have applied for loan consolidation
for the PSLF limited waiver, and also filed a request
for Reconsideration as we were directed to do so.
We have case numbers. Thus, it seems a clear set of
instructions through email or snail mail for those
individuals who have taken every step available
during the limited PSLF waiver and how to
coordinate that effort by filling this JCLS application
would decrease confusion, frustration, and
ultimately calls made to the FSA Ombudsman Office.

Page 9 of 34

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Comment

FSA Response

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0014

Section 23 (I) states that PSLF payments will be
counted on Joint Direct Loans. Does this mean those
of us in FFELP Joint Loans will not have our previous
"qualifying" payments counted toward PSLF? Given
the majority of us were not given the option to
choose in our states, why are we punished because
we are in a loan type discontinued in 2010? This
seems like a cruel path. In addition PSLF wasn't in
existence when most of us joined into a joint loan,
so we could not make educated decisions for what
we didn't know. Had many of us been given the
option by our "advocates," we likely would have
chosen a Direct Joint loan over a commercially-held
loan.

Public Service Loan Forgiveness (PSLF) is available
only for Direct Loan Program loans. When a Federal
Family Education Loan (FFEL) Program joint
consolidation loan borrower completes the
Combined Application to Separate a Joint
Consolidation Loan and Direct Consolidation Loan
Promissory Note, their portion of the FFEL joint
consolidation loan will be consolidated into the
Direct Loan Program. Under the one-time incomebased repayment account adjustment, these
borrowers who complete PSLF applications will
receive retroactive eligibility if they were preforming
eligible service while repaying their FFEL joint
consolidation loans. This eligibility is applied to the
new Direct Consolidation Loan. If the one-time
account adjustment occurs prior to the separation
process, these borrowers will receive this
adjustment retroactively. Because this process is
one-time and not part of the application or eligibility
for separation, it is not covered on the form.

1. It is established practice for all federal student
loan promissory notes to require references. As
explained in the instructions, references may be

Katherine Craft

I understand the Law does not have this provision in
it; however, the Department of Education should
make this right and provide counts toward PSLF
based on Biden's recount. Will the recount apply?

0015

Sharon Stone

1. Asking for references is unnecessary. These loans
have been in place for years.

Page 10 of 34

Comment

FSA Response

2. If the JSCL is a Direct Consolidation Loan that has
already had some forgiveness through PSLF (spouse
A) resulting in a balance that belongs to only one
spouse (spouse B) based on percentages of the
original loan, will the new DCLs show the one spouse
with 100% forgiveness and one spouse with the
remaining amount? That's unclear.

contacted to assist in locating the borrower if the
Department is unable to reach the borrower by
other means. References are used only for this
purpose. They are never held liable for repayment of
the loan and are not contacted as part of application
process.

3. The JSCLs are both DCL and FFE; there should be
some clarification in the application and directions
because they have different histories.

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2. In the situation described in comment #2, the
remaining balance of the joint consolidation loan
after the partial forgiveness through the PSLF
Program is still a joint debt, and it would be
separated in accordance with the terms of the Joint
Consolidation Loan Separation Act, as described in
Section 4 of the application.
3. It is unclear from the comment what further
clarification is being recommended.

0016

Anonymous

Remove the requirement that applicants provide
two references. References are not required for
other Department of Education loan consolidation
applications. To require JSCL holders desiring loan
separation to provide references continues the
unnecessary burden and mistreatment of these

Page 11 of 34

0017

Kristin Logsdon

Comment

FSA Response

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holders compared to other federal student loan
borrowers. There is no need for references.

never held liable for repayment of the loan and are
not contacted as part of application process.

How can we ensure that our loan calculations will be
correct when Navient can't even find our original
promissory notes? This process needs to speed up,
we are being charged hundreds to thousands in
interest monthly, many of us are eligible for PSLF

The comment is outside the scope of this
information collection.

. Our loans have exploded and we often owe double
or triple than the original balances despite paying for
decades. We deserve borrower defense protections,
we have been scammed.
0018

Alexander Rogers

My wife and I have a Joint Consolidated student loan
(JCL) with Navient that we have been paying since
2002 and never have been in default. Under the new
IDR Account Adjustment, there are several
statements that are consistent with my Navient
loan. In particular, the accumulated time in
repayment of at least 20 or 25 years, and PSLF.
My wife and I have been public employees for 17+
years. There were times that we initiated
forbearance with the Navient loan. Once when my
wife went back to school to acquire an Education
Page 12 of 34

Comment

FSA Response

degree and another time when we struggled
financially during Hurricane Katrina (my wife lost her
job and we moved from Louisiana to Arkansas).
Other times were not initiated by us, but all times
under forbearance we were penalized with
capitalized interest that resulted in owing slightly
less than our original loan. We have paid out of
pocket over twice the original balance. I have
records to support all the things that I mention.
We’ve been told many times by DOE that my wife
does not qualify for the teacher forgiveness because
of this JCL with Navient. We both, being government
employees for 17+ years, should qualify for PSLF but
do not because of the JCL with Navient. We’ve been
told for years that our JCL must be consolidated to a
direct loan under DOE in order to qualify for these
benefits. However, a process has yet to be provided
for us.
We were hopeful and excited with the passing of law
PL117-200 but are extremely disappointed that it
cannot be implemented due to lack of funding.

Page 13 of 34

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Comment

FSA Response

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We respectfully request that you support full
funding to ED for execution of the law PL117-200.
0019

Rachel
Cunningham

My spouse and I borrowed around 40,000 for
graduate school, we have paid back over 100,000
and we now owe 470,000 due to interest that keeps
accruing. Our loans were in hardship forbearances
and deferments for a long time because the "income
sensitive repayment" plans were not really income
sensitive as it included interest and it made the
payments too high. After that program was
revamped by Obama, we finally were able to make
payments. I could not get into the PSLF program
because we had already consolidated our loans. In
the mean time I have worked for 28 years for a
school district. These loans need to be forgiven if
they are over 20 years old and if the borrows have
paid back everything borrowed. We should not have
to continue making payments forever and we should
not have to pay taxes (state) on what is forgiven.

The comment is outside the scope of this
information collection.

0020

Theresa B.

There is no place on this application for a divorced
applicant to indicate that one party has made a
disproportionate amount of payment. In cases of

The Joint Consolidation Loan Separation Act does
not provide for a co-borrower of a joint
consolidation loan to certify the amount they paid

Page 14 of 34

0021

Spousal
Consolidation.Do
Us Part!

Comment

FSA Response

divorce, frequently one party has made more, the
majority, or in many cases ALL of the payments with
zero contribution from the other party. Whereas
individuals have been managing these loans for 20
years or more, there needs to be a way for a
borrower to certify that he or she has overpaid so
that may be calculated into the separation result.

toward the combined debt compared to the other
co-borrower.

Section 1

We will revise and expand the instructions to more
clearly explain the application process, and to clarify
the terms “borrower” and “co-borrower.” With
regard to which name should be used, the form
already asks for both the applicant’s current name
and any former names used.

Making sure name matches with FSA sight
Section 2
Definition of Co-Borrower/ Primary
Name match up with FSA – hyphenated last names,
problems putting last names into FSA program at
times
Something in instructions as WHO is consider a coborrower, WHO is the primary? who is secondary
Instructions as to which name should be used -prior
names like other married names/maiden.
Section 3

Page 15 of 34

Change
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Yes

Comment

FSA Response

References- Why do we need this?

Is form for both co-borrowers or does each
spouse/borrower need to fill out separate forms?

If both joint consolidation loan co-borrowers apply
to separate the joint debt, each individual must
submit a separate application that will request
information pertaining to that individual. It is
permissible for both individuals to list the same
references on their respective applications.

Makes perfect sense to have one spouse fill out then
FSA give code for coborrower to complete their part.
So both are submitted together.

With regard to what the interest rate will be for the
separated loans, this is explained in Section 8, Item 6
of the application.

It would be better to do this process digitally like
they do the IBR....

For the initial implementation of the Joint
Consolidation Loan Separation Act, only a paper
application process will be available. The time
required to develop an online application process
would further delay the implementation.

Will both co-borrowers need separate references or
can they use the same references?

Section 4
#18- 19 or 20
Very broad; borrowers may get caught up in unique
circumstances and the application does not lend
itself to considering those.
Spouse A and Spouse B subsidized loans and
unsubsidized loans were kept separated by the
Department of Education. If a borrower only have
unsubsidized loans, doing a separation could assign

Page 16 of 34

Other comments are outside the scope of this
information collection.

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Comment

FSA Response

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The word “Combined” in the title of the application
simply indicates that the form serves as both an
application and a promissory note. It does not mean
that both joint consolidation loan co-borrowers
must complete the same application. If both coborrowers wish to separate the joint debt, each

Yes

subsidized loans to a coborrower that didn’t have
subsidized loans.
Concern about the co-borrower being able to get
information on loans, especially in the cases of
domestic violence. Both parties should be able to
make inquiries without the primary borrower.
Option for only contacting by mail – some people
don’t want texts and don’t have cell phones, don’t
want to list cell phone. It doesn’t say what to do
with the application, will the servicers be proactive
with the applications. Forms should be done through
studentaid.gov, because how do we know that the
servicers are getting the information? – huge
disconnect, a borrower could be at the mercy of a
commercial company. Question about what the
interest rate will be for the new separated loans.
0022

Spousal
Consolidation.Do
Us Part!

Comments being made are from the perspective of a
group of Divorced, separated and or victims of
domestic violence JCL Borrowers.
1.Title of application is not accessible for individuals
no longer in contact with spouse.

Page 17 of 34

Comment

FSA Response

Section 1

individual must submit their own combined
application and promissory note.

1. Not clear who the borrower is.
2.Application does not apply to spouses that dont
communicate with their former spouse. Doesn't
address divorced persons with no ability to contact
the spouse.
4. Define who the borrower, is co-borrower and how
will those individuals be represented This language
should be changed from “Borrower and
Coborrower” to “Applicant”.
Section 2 same as above
Section 3 Reference information
This section does not seem necessary, why is the
borrower providing references for loans that are
already in process.
Should be included in the application for direct
consolidation.
Streamlined separate process for divorced spouses.
Section 4

Page 18 of 34

We will revise and expand the instructions to more
clearly explain the application process, and to clarify
the terms “borrower” and “co-borrower.”
It is possible for just one of the co-borrowers to
apply (without an application from the other coborrower), if the applying co-borrower certifies that
they are victims of economic abuse or domestic
violence, or that they are unable to reach or access
the loan information of the other co-borrower.
It is established practice for all federal student loan
promissory notes to require references. As explained
in the instructions, references may be contacted to
assist in locating the borrower if the Department is
unable to reach the borrower by other means.
References are used only for this purpose. They are
never held liable for repayment of the loan and are
not contacted as part of application process.
The Joint Consolidation Loan Separation Act (JCLSA)
specifies the formula for separating a joint
consolidation loan proportionately and outlines

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Comment

FSA Response

Does not cover enough scenarios- This section
should outline different sections for different
situations.

specifically what is required for a joint consolidation
loan to be separated in a non-proportional manner.
We do not have the authority to deviate from these
statutory requirements. Likewise, the JCLSA does not
provide for a co-borrower of a joint consolidation
loan to certify the amount they paid toward the
combined debt compared to the other co-borrower.

18 joint application based on the previous balance
on the loan is confusing
Are both borrowers applying for separation at the
same time?
19 joint application based on a court order
Divorce was prior to more information about the
loan.
All debts and loans were separated equally, but that
was not an option then.
Court ordered documents 20 years ago is not an
accurate reflection where we are.
20 There needs to be an additional section for JCL
borrowers who are separated to apply for
separation with credit for the payments they have
made without the co borrower.
Ability to provide supporting documentation with
court orders and rulings against a former spouse.
Page 19 of 34

A joint consolidation loan co-borrower who certifies
that they have experienced economic abuse or
domestic violence is not required to provide
supporting documentation. The individual’s selfcertification is sufficient.
With regard to the comment about borrowers with
other loans that are not part of the joint
consolidation, Section 8, Item 5 explains that other
loans may be added after the joint consolidation
loan has been separated.
Other comments are outside the scope of this
information collection.

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Comment

FSA Response

Distribute the remaining debt proportion equally
based on the spouse who has made the payments.
Some borrowers have made ALL of all the payments
made.
There needs to be a place where borrowers can ask
to certify the number of payments we made and get
credit.
Some divorced spouses paid part of the debt jointly
and part of the debt together.
At the time of separation there was no law to govern
how these separations should take place. Lawyers
didn’t even know what do with these loans and
many factors were not considered at the time of
divorce.
One spouse became a sole-earner while the other
spouse re-married and had income to pay loan so
the other spouse would not qualify for IBR or other
programs that would have been available to them
otherwise.
Some spouses were also entitled to child support
that was used to pay for student loans
Page 20 of 34

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Comment

FSA Response

Some spouses never received child support, but still
maintained regular payments of the loans. This was
an unnecessary burden to the responsible person
who made the payments.
Those who would have qualified for IBR or other
programs outlined by the Department of Education
but could not because of the joint nature of the Joint
Consolidated Loan.
How is the borrower supposed to certify that they
are victims of economic abuse?
There may be other repercussions of certifying
abuse – children upset that one parent is claiming
abuse to separate a loan.
Does intent need to be defined for this classification
or do we self-certify?
More information in this section is needed: the
wording needs to be clear and concise regarding
what is required. Some borrowers may be victims of
neglect or circumstance.

Page 21 of 34

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Comment

FSA Response

Address the co-borrower, borrower language again
in this section – suggest changing the language to
applicant and spouse or former spouse.
If a borrower was taken advantage of because of the
nature of this situation, language needs to reflect
those situations here to cover multiple scenarios.
Flexible enough to include large numbers of people.
Violence against Women Act?
Focused on women, but there may be men in this
situation as well.
The intent of the law needs to exclude gender.
The last line does not indicate who is responsible for
the debt and accrued interest if only one person is
applying.
How will this work if the two separate individuals
apply under two different items or numbers?
Borrower is either both jointly certifying that they
are applying for separation or they are not.

Page 22 of 34

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FSA Response

What happens in the instance of retribution when
one spouse does not agree?
Section 6
Some borrowers have other loans that are not part
of the consolidation, but there is nothing addressing
this situation.
Some borrowers have multiple servicers –
Administrative forbearance needs to be provided for
all the loans.
This section makes it seem like the clock is starting
over on these loans.
Some borrowers have Parent Plus loans that are
entering repayment.
Public Student Loan Forgiveness needs to be
mentioned here.
Non-profit work, teachers etc.
What happens when a former spouse submits one of
these applications fraudulently?

Page 23 of 34

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Comment

FSA Response

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Language makes it seem like the loan starts over and
re-payment time goes day by day.
0023

Jamie Wilson

I am widowed and STILL cannot get PSLF even
though I AND my late husband fulfilled several years
over the 10year/120 months requirement as public
school teachers in qualifying school districts because
our FFEL loans initiated as a spousal consolidation
FFEL in 2004. We have paid back more than double
what we originally consolidated, and though his
portion was “discharged upon death” in May 2020,
my remaining balance is still classified as a spousal
consolidation and, therefore, I continue to get
denied PSLF.

These comments are outside the scope of the
information collection.

0024

Lori Klein

Section 1: Borrower Information

Other federal loan promissory notes also require a
borrower to provide information about their
employer. The employer may be contacted to assist
in locating the borrower if the Department is unable
to reach the borrower by any other means. The
employer information is used only for this purpose,
and the employer is not contacted in connection
with the application process.

Why do you need my employer?
Section 3: Reference Information
Why are you asking for references? These have been
provided, and I am not in default
Section 4:
Item 19 offers a provision to separate loans based
on the terms of a divorce decree or separation
Page 24 of 34

Comment

FSA Response

agreement, but Item 20 (for abused ex-spouses)
does not.

My abusive former spouse signed a settlement
agreement defining our ownership as 50/50, which
differs from the proportion originally borrowed.
He then left the country, never making a single
payment. (Nor did he pay child support or alimony;
the financial burden has been profound.) Any
payments made (since 1993 in fact) were made by
me alone. We consolidated in 2005, and I was still
the only one who made payments.
It seems Item 20 should offer the same option for
those abused, as Item 19 does.
And a sworn statement specifying whether the other
spouse ever made payments, and adjusting
accordingly, seems only fair.
I also believe payments made prior to consolidating
should be included in payment counts
Section 5: Repayment Plan selection The instructions
state that IDR plans should be requested directly
through StudentAid.gov. When would we do that?
Page 25 of 34

The Joint Consolidation Loan Separation Act (JCLSA)
allows for separation of a joint consolidation loan in
a non-proportional manner only in cases where both
co-borrowers agree and have provided legal
documentation specifying an alternate amount. The
law does not allow for this if just one co-borrower
applies.
With regard to counting payments made prior to
consolidation, the application reflects the regulatory
requirements of the Direct Loan Program.
The capitalization discussed in Section 6, Item 23.J is
capitalization that may occur after the joint
consolidation loan has been separated into a new
individual Direct Consolidation Loan (for example, at

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Comment

FSA Response

Until the loans are separated, those applications are
considered ineligible.

the end of a deferment period). This capitalization is
required by law. If a joint consolidation loan has an
outstanding unpaid interest balance at the time the
loan is separated, federal regulations specify that
the unpaid interest becomes part of the principal
balance of the borrower’s new Direct Consolidation
Loan.

Section 6.23.j: “Capitalization”
More? Really? The $40K I originally borrowed has
capitalized over and over and is now showing a
principal due of $178,063.45 with $47,378.90 in
unpaid interest. I’m going to be 60 in July. Are we
really going to continue to capitalize these loans?
Section 8.6: Interest rate
Does this mean the same interest rate will apply?
I’ve been locked in at 8.25% since 1982
Section 8.7 Payment of Interest
Will we be consolidating into a direct subsidized or
unsubsidized consolidation loan? Do we have a
choice? Which is more advantageous?
Unsubsidized seems to accrue interest in almost
every scenario. Is the SAVE Plan an option for both
subsidized and unsubsidized loans?
Section 10 Repaying

Page 26 of 34

The JCLSA specifies that the interest rate on a
borrower’s new individual Direct Consolidation Loan
will be the same as the interest rate of the joint
consolidation loan before it was separated.
A Direct Consolidation loan may have up to two
components, subsidized and unsubsidized, that are
determined based on the types of loans that are
repaid by the consolidation loan. A borrower who
applies for a Direct Consolidation Loan may not
choose between subsidized and unsubsidized.
The repayment terms for Direct Consolidation Loans
are determined by federal law and regulations and
cannot be changed.

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FSA Response

These are terms of 10 - 30 years, and most of us are
in our 50s, 60s, and 70s.

Other comments are outside the scope of this
information collection.

Are we going to pay these until we die, even though
we have already carried these loans since age 17 in
most cases?
Income Driven Repayment (IDR) - this is based on
family size and income, but does not take into
account those of us caring (financially and
otherwise) for family members with medical issues
who cannot work, drive or contribute.
Will expenses be factored into the equation?
In the interest of paper reduction and efficiency,
does it make sense to gather the following
information at this time:
1) First generation college attendees
2) Pell Grant Recipients
3) Bankruptcy
4) Spousal abuse
5) Age of loans

Page 27 of 34

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Comment

FSA Response

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This is standard language used in all federal student
loan promissory notes. Similar language was
included in the promissory notes that were used to
make joint consolidation loans. This language is
necessary because future changes to federal law or
regulations may modify or expand upon the loan
terms and conditions as described in the promissory
note. The Joint Consolidation Loan Separation Act
(JCLSA) is an example. The original promissory notes
that were used to make joint consolidation loans
stated that these loans would always be joint debts
regardless of any change in the marital status of the
co-borrowers, but the JCLSA modified this
requirement by allowing joint consolidation loans to
be separated under certain conditions.

6) Age of borrowers
7) Loan balance today versus amount originally
borrowed
8) Medical conditions
9) Dependent or close family with medical
conditions
0025

Anonymous

The following note located on Page 7, Section 8 of
the Combined Application states:
NOTE: Amendments to the Act may change the
terms of this Note. Any amendment to the Act that
changes the terms of this Note will be applied to
your loan in accordance with the effective date of
the amendment. Depending on the effective date of
the amendment, amendments to the Act may
modify or remove a benefit that existed at the time
that you signed this Note.
Who in their right mind would sign a contract
knowing that the terms of the contract can be
changed in the future and any changes will likely
harm the borrowers? JC Loan borrowers have lived
with the detrimental effects of changes made to the
Page 28 of 34

Comment

FSA Response

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HEA when Congress covertly struck Joint
Consolidation Loans from statute in 2006 leaving us
with no regulatory protections and requiring us to
fight to get a new law passed in Congress that
neither Congress wants to fund and Dept of
Education want to implement. This is not fair and it
isn't at all just.
0026

SpousalConsolidati
on.DoUsPart!

(comments are in a separate document)

(responses are in a separate document)

0027

NCHER and SLSA

Comment

We will modify the language in Section 6, Item 23.G
to read as follows:

Effective July 1, 2024 [new regulation
685.209(k)(4)(vi)(A)] underlying qualifying FFELP
loan payments count towards forgiveness on a
Direct Consolidation loan. The qualifying payments
include those made under 682.209(a)(6)(vi) and
682.215, which includes the following payments on
or after July 1, 2009:
•

Standard 10-year period payments

•

Payments under an IBR plan, including:

Page 29 of 34

G. If I am applying to separate a joint Federal
Consolidation Loan into a new Direct Consolidation
Loan and I choose to repay my Direct Consolidation
Loan under an IDR plan, the following will count as
qualifying payments toward IDR loan forgiveness on
my new consolidation loan: (1) any payments made
on or after July 1, 2009 on the joint Federal
Consolidation Loan under the IBR Plan, the Standard
Repayment Plan with a 10-year repayment period,
or any other repayment plan if the payment amount
is not less than an amount calculated for a 10-year

Yes

Comment

FSA Response

partial financial hardship (PFH)
payments

permanent-standard payments

standard-standard payments

expedited-standard payments

•

Other plan payments (Graduated, Extended, ISR,
Alternative) not less than standard-standard
payments, and

•

Periods of Economic Hardship Deferment (EHD)
on or after July 1, 2009

Proposed Change
Edit section 6, item 23.G. for clarity to reflect the
regulatory provisions to read:
G. If I am applying to separate a joint Federal
Consolidation Loan into a new Direct Consolidation
Loan and I choose to repay my Direct Consolidation
Loan under an IDR plan, any payments made on or
after July 1, 2009 on the joint Federal Consolidation
Loan under the IBR Plan or the Standard Repayment
Plan with a 10-year repayment period or other plans
Page 30 of 34

repayment period based on the loan balance
outstanding when I entered repayment on the joint
Federal Consolidation Loan; or (2) any months on or
after July 1, 2009 of economic hardship deferment
on the joint Federal Consolidation Loan.

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Comment

FSA Response

Change
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or
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General: Define Borrower and Co-Borrower or call
them both Co-Borrower.

We will revise the form to clarify the terms
“borrower” and “co-borrower.”

Yes

Application Section 1: Driver's license State and
Number seems unnecessary information as does
Employer's Name, address and work phone number.

It is standard practice on federal student loan
promissory notes to collect driver’s license and
employer information. This is used to help locate the
borrower if the Department is unable to reach the
borrower by other means. The employer is not
contacted during the application process.

(i.e., Graduated, Extended, Income-sensitive) not
less than an amount calculated for a 10-year
repayment period based on the loan balance
outstanding when I entered repayment on the joint
Federal Consolidation Loan or any months on or
after July 1, 2009 of economic hardship deferment
on the joint Federal Consolidation Loan, will count as
qualifying payments toward IDR loan forgiveness on
my new consolidation loan.
0028

James Achuff

Application Section 2: Should require exactly the
same information as in Section 1 with the caveat
that if filing as a separate application what minimal
information is required.
Application Section 3: This is unnecessary.
Application Section 4: It will be truly interesting to
see what proportion the Department is able to come
Page 31 of 34

Section 2 (co-borrower information) does not collect
driver’s license and employer information because
that information would be collected on the separate
application submitted by the co-borrower (if the two

Comment

FSA Response

up with. I know what mine should be, but many of us
who have these loans probably don't and I suspect
that neither do the servicers.

co-borrowers both submit applications to separate
the joint debt).

Guidance for those eligible for PSLF needs to be clear
and concise. None of us wants to risk the chance
that our application will be delayed or rejected or
that our chances for forgiveness will be ruined if we
make an incorrect choice.

It is established practice for all federal student loan
promissory notes to require references. As explained
in the instructions, references may be contacted to
assist in locating the borrower if the Department is
unable to reach the borrower by other means.
References are used only for this purpose. They are
never held liable for repayment of the loan and are
not contacted as part of application process.
Guidance on the one-time income-driven repayment
account adjustment and Public Service Loan
Forgiveness (PSLF) can be found on StudentAid.gov.
Because the one-time account adjustment is a
temporary benefit, it is not covered on the form.

0029

SpousalConsolidati
on.DoUsPart!

(comments are in a separate document)

(responses are in a separate document)

0030

Student Borrower
Protection Center,
et al.

(comments are in a separate document)

(responses are in a separate document)

Page 32 of 34

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Comment

FSA Response

0031

Student Borrower
Protection Center

(comments are in a separate document)

(responses are in a separate document)

0032

Dawn Baker

It is imperative that payments made on “joint direct
consolidation loan” will count toward the ten year
Public Service Loan Forgiveness.

This is addressed in Section 6, Item 23.I.

0033

Anonymous

I was under the impression that once separated we
would still be eligible for the one time adjustment
that was granted to borrowers last year (IDR
forgiveness count) yet I see no mention of this in that
section. Why? Also what’s the point of references for
something that we already have been paying for
years. Third requiring a married couple to file two
forms instead of one jointly seems
counterproductive, as well as messy with a larger
chance of error

Guidance on the one-time income-driven repayment
account adjustment and Public Service Loan
Forgiveness (PSLF) can be found on StudentAid.gov.
Because the one-time account adjustment is a
temporary benefit, it is not covered on the form.

Page 33 of 34

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FSA Response

never held liable for repayment of the loan and are
not contacted as part of application process.
If both joint consolidation loan co-borrowers wish to
separate the joint debt into individual Direct
Consolidation Loan, it is necessary for each
individual to submit a separate application because
the application also serves as a promissory note for
the new Direct Consolidation Loan. Because the new
consolidation loans are no longer joint debts, each
individual must sign a separate application and
promissory note.

Page 34 of 34

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File Type	application/pdf
Author	Beth Grebeldinger
File Modified	2024-04-11
File Created	2024-04-11