New Partial-Discharge Form Issued for Consolidation Loans

The National Council of Higher Education Loan Programs recently developed a new version of a form for use in filing a consolidation-loan claim or discharge request when the discharge reason applies to only some of the underlying loans in the consolidation loan.

Lenders filing a discharge claim for a qualifying portion of a consolidation loan may begin using the new “Request for Reimbursement Due to Partial Discharge of a Federal Consolidation Loan” form immediately. They must, however, use the form effective for any discharge request filed on a portion of a consolidation loan on or after June 1, 2007. 

Lenders must use this form only when requesting reimbursement for the partial discharge of a Federal Consolidation loan due to either of the following reasons:

• The death of a dependent student for whom a PLUS loan was received and later consolidated.
• The discharge of underlying loans due to a closed-school or false-certification situation.

If all of the loans consolidated are eligible for loan discharge for the same discharge reason, the lender must file a request for discharge with the guarantor using the Claim Form.

You’ll need Adobe Reader to access the new form and the Claim Form on the USA Funds^® Web site.