General Forbearance Request - William D. Ford Federal Direct Loan Program (Page 2 of 2) in pdf

SECTION 4: INSTRUCTIONS FOR COMPLETING THE GENERAL FORBEARANCE REQUEST FORM

Type or print using dark ink. Enter dates as month-day-year (mm-dd-yyyy). Example: January 31, 2012 = 01-31-2012. Include your name and account number on any supporting

documentation that you are required to submit with this form. If you need help completing this form, contact your loan servicer. .

Note to Endorsers/Co-makers: (1) If you are an endorser of a Direct PLUS Loan, you may request forbearance only when you are required to repay the loan because the borrower

is not making payments; (2) if you are requesting forbearance on a Direct Consolidation Loan that was made jointly to you and your spouse as co-makers (joint borrowers), each of

you must complete a separate forbearance request.

Send the completed form and any required supporting documentation to:

If you need help completing this form, call:

Nelnet

Fax: 866.545.9196

Attn: Enrollment Processing

P.O. Box 82565

Lincoln, NE 68501-2565

Call: 888.486.4722

SECTION 5: DEFINITIONS



Capitalization is the addition of unpaid interest to the principal balance of your loan. The principal balance of a loan increases when payments are postponed during periods of

deferment or forbearance and unpaid interest is capitalized. As a result, more interest may accrue over the life of the loan, the monthly payment amount may be higher, or more

payments may be required. The chart below provides estimates, for a $15,000 unsubsidized loan balance at a 6.8% interest rate, of the monthly payments due following a 12-

month forbearance that started when the loan entered repayment. It compares the effects of paying the interest as it accrues and capitalizing the interest at the end of the

forbearance. The actual loan interest cost will depend on your principal balance, interest rate, and length of the forbearance. Paying interest during the period of forbearance

lowers the monthly payment by about $12 and saves about $389 over the lifetime of the loan, as depicted in the chart below.

Treatment of Interest Accrued

Loan

Capitalized Interest

Principal to

Monthly

Number of

Total Amount

Total Interest

During Forbearance

Amount

for 12 Months

Be Repaid

Payment

Payments

Repaid

Paid

Interest is paid

$15,000.00

$0.00

$15,000.00

$172.62

120

$21,736.55*

$6,730.66

Interest is capitalized at the end of

$15,000.00

$1,022.09

$16,022.09

$184.38

120

$22,125.94

$7,119.64

forbearance

*Total amount repaid includes $1,022.09 of interest paid during the 12-month period of forbearance.

A co-maker is one of two individuals who are joint borrowers on a Direct Consolidation Loan. Both co-makers are equally responsible for repaying the full amount of the loan.



An endorser is someone who promises to repay a Direct PLUS Loan if the borrower does not repay the loan.



A forbearance is a period during which you are allowed to temporarily postpone making payments, allowed an extension of time for making payments, or temporarily allowed to



make smaller payments than previously scheduled. Interest is charged during a forbearance on all types of Direct Loans.

The William D. Ford Federal Direct Loan (Direct Loan) Program includes Federal Direct Stafford/Ford (Direct Subsidized) Loans, Federal Direct Unsubsidized Stafford/Ford



(Direct Unsubsidized) Loans, Federal Direct PLUS (Direct PLUS) Loans, and Federal Direct Consolidation (Direct Consolidation) Loans.

SECTION 6: IMPORTANT NOTICES

Privacy Act Notice. The Privacy Act of 1974 (5 U.S.C. 552a) requires that the following notice be provided to you:

The authority for collecting the requested information from and about you is §451 et seq. of the Higher Education Act of 1965, as amended (20 U.S.C. 1087a et seq.) and the

authorities for collecting and using your Social Security Number (SSN) are §484(a)(4) of the HEA (20 U.S.C. 1091(a)(4)) and 31 U.S.C. 7701(b). Participating in the William D. Ford

Federal Direct Loan (Direct 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 Direct Loan Program, 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) becomes delinquent or defaults. 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

statuses, 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. Public reporting burden for this collection of information is estimated to average 0.2 hours (12 minutes) per response, including the time for reviewing

instructions, searching existing data resources, gathering and maintaining the data needed, and completing and reviewing the information collection. Individuals are obligated to

respond to this collection to obtain a benefit in accordance with 34 CFR 685.205. Send comments regarding the burden estimate(s) or any other aspect of this collection of

information, including suggestions for reducing this burden to the U.S. Department of Education, 400 Maryland Avenue, SW, Washington, DC 20210-4537 or e-mail

ICDocketMgr@ed.gov and reference OMB Control Number 1845-0031. Note: Please do not return the completed form to this address.

If you have questions regarding the status of your individual submission of this form, contact your servicer (see Section 4).

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