60D Comment Response Spousal Consolidation 1

Comments for Docket No. ED-2024-SCC-0005
JCLSA Dra Joint Consolidation Loan Separation
Application & ICR
Purpose of Document
This document summarizes comments that Joint Consolidation Loan borrowers contributed regarding
the Department of Education’s (ED) and Federal Student Aid’s (FSA) Combined Application to Separate
a Joint Consolidation Loan and Direct Consolidation Loan Promissory Note draft as a utensil for
implementation of the Joint Consolidation Loan Separation Act (JCLSA), 455(g)(2)(A)(i) of the HEA. It
is an official set of comments to be posted to the Federal Registry for this draft application.
These comments and concerns were gathered from organization members and documented
through three sessions conducted by SpousalConsolidation.DoUsPart! (DoUsPart!). These
comments address reviews conducted by JCL borrowers who are married, divorced, victims of
abuse, and who may be interested in seeking access to federal benefits related to Public Service
Loan Forgiveness (PSLF), Income-Driven Repayment Forgiveness (IDR), Borrower Defense,
Permanent and Total Disability, etc.
This document does not preclude individual members from submitting comments to the Federal
Register. DoUsPart! Members are advised to contribute their comments to the Federal Register within
the Public Open Comment period.
Comments are organized by draft application sections. Only draft sections from the application or
associated documents that received comments are included.

Comments for
ED-2024-SCC-0005-0003_attachment_1.docx
Comments for Application Title

The Meaning of “Combined”
The initial response is that the application's title is not accessible for individuals no longer in contact with
their former spouse.
Does “Combined” refer to borrowers applying in combination or both applications for separation and
Direct consolidation in combination? Given the circumstances for borrowers, the nature of JCLs and this
form, this creates confusion for those filling out the application. This clarification of “combined” should
be included in the “BEFORE YOU BEGIN” section.
This becomes evident in feedback from some borrowers who believe that the “REFERENCE
INFORMATION” should be included in the application for Direct consolidation. Here, borrowers see
“Combined” as both borrowers applying for separation, not as applying for both separation and Direct
consolidation.
Setting this straight from the beginning will help address some of the issues itemized under each
section, as the borrowers' interpretation of “combined” colors and how they interpret the remainder
of the document significantly. This will become clear as the following items are discussed.
FSA Response: The word “Combined” in the title of the application simply indicates that the form serves
as both an application to separate a joint consolidation and a promissory note for the new individual
Direct Consolidation Loan (that is, the application and promissory note are combined into a single form).
This word “combined” in the title is not intended to refer in any way to how the two co-borrowers of a
joint consolidation loan apply to separate the loan. However, we will review the language used in other
places throughout the form and make changes where appropriate for greater clarity.

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Comments for Sections 1 & 2

“Borrower” vs. “Co-borrower”
Generally, confusion on the terms “borrower” and “co-borrower” must be mitigated early via clear
definitions because it will color how borrowers process every subsequent section, option, and
requirement within the document.
Who qualifies as the borrower, who qualifies as the co-borrower, and how will those individuals be
represented? This should be made clear. Depending on the proper requirements, this language should
possibly be changed from “Borrower” and “Co-borrower” to “Applicant” and “Co-Applicant.” This
intersects the original clarification needed for “combined” in the document's title.
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For close to two decades, borrowers, particularly the secondary borrower on the account, have had
difficulties in accessing information from servicers on their own loan. In many cases, the loan holder
only has the borrower's name for the loan and the FSA site only lists the loans under the original
borrower's name with no reference to the co-borrower. For example, if a co-borrower inquires about
the JCL, they do not see any loans under their name, and servicers do not provide information to the
co-borrower because their name is not associated with the Loan. This intersects concerns in Section 6,
Item 23. D.
Based on the prior conditions, it’s unclear whose name should go in Section 1 and whose name should
go in Section 2. Should the original borrower on the loan always go in the borrower section, or should
the name of the person completing this application, whether borrower or co-borrower, go in Section 1
of this application?
Real-life example: A member of the group is divorced. Her ex-husband is the original/primary borrower
of their JCL, and she is the secondary borrower or co-borrower. Does her ex-husband’s name go in
Section 1? She is unable to gather the required information from him for that section. If she puts her
name in Section 1, will she be denied because she is a co-borrower on the original loan?
Some borrowers have experienced complications with populating last names into FSA’s portal fields,
leading to problems retrieving information from that system due to name matching, particularly in
cases with hyphenated last names. This intersects the issue discussed above with secondary borrowers’
access to loan information within FSA’s and the servicers’ systems. JCL borrowers are concerned with
how this will affect application processing and the burden to borrowers if applications are denied. This
is further complicated for some borrowers who are uncooperatively divorced and secondary coborrowers on loan and cannot access loan information.
FSA Response: The Department agrees that there may be some confusion related to the use of the terms
“borrower” and “co-borrower,” particularly in light of the way joint consolidation loans have traditionally
been reported by loan servicers. We will explore ways to revise the language used on the form for
greater clarity in this area.

Other issues
When a loan has been passed to multiple servicers, information is not always provided to the succession
of servicers. How will FSA or servicers know who both co-borrowers are if this information has been lost
in the transition between servicers?
FSA Response: This comment does not relate to the information collection.
Is it common to ask for an employer’s name on these applications? They don’t ask for this information
under the Co-Borrower. While we assume each person holding the loan will complete the application
and be the “borrower” on their application, we do not want to make assumptions because this
historically leads to denial. Borrowers should not have to guess. (This comment may stem from a lack
of clarity that this document is both an application for separation and a master promissory note,
bringing this back to the needed clarification of “combined.” )

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FSA Response: Other Direct Loan promissory notes also request employer information. The employer
may be contacted to help locate the borrower if the Department is unable to reach the borrower using
other contact information that the borrower has provided. The employer is not contacted as part of the
consolidation loan approval process.
The application does not ask for the co-borrower’s employer information because if both co-borrowers
wish to separate the joint debt into individual consolidation loans, each individual must submit a
separate application and provide their own employer information.
No change.
The application does not directly address borrowers who are uncommunicative or uncooperative with
their former spouse/co-borrower. How will they address divorced persons out of contact with each
other?
FSA Response: Section 4, Item 20 outlines the application process for such borrowers.
No change.
Should there be a different application for divorced applicants who will not have access to the
“co-borrower” information? If co-borrower information is missing, will the application be denied? While
Section 4 does provide an option for victims to file alone, the application seeks co-borrower information.
Clarity is needed.
FSA Response: We do not see a need to have a separate application for divorced co-borrowers. The
co-borrower information is needed to identify the joint consolidation loan that the applicant wishes to
separate. The co-borrower section requests only the individual’s name, date of birth, and Social
Security Number (SSN). We believe that even in most divorce situations the two joint consolidation
loan co-borrowers would know each other’s name and date of birth, and in many cases would also
have access to records showing the other individual’s SSN. If a borrower does not have access to the
co-borrower's SSN, the borrower can leave it blank. The consolidating servicer may contact the
borrower for additional information to identify the joint consolidation loan in this scenario.

Comments for Section 3

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This section is unnecessary. Why are we providing references for loans that are already in process? ED2024-SCC-0005-0003_attachment_2.docx claims that the purpose of collecting this information is not as
loan references but rather contacts who would be able to help ED or FSA contact borrowers in the
future if ED or FSA is unable to reach them. References are used only for this purpose and are never
required to repay your loan.
Perhaps this section should be renamed “CONTACT INFORMATION.”
FSA Response: It is established practice for all Direct Loan Program promissory notes to require two
references. These individuals may be contacted to help locate the borrower if the Department is unable
to reach the borrower using other contact information provided by the borrower. References are used
only for this purpose. They are not held liable for repayment of the loan and are not contacted during
the processing of an application to separate a joint consolidation loan.
No change.
Will both co-borrowers need separate references, or can they use the same references?
FSA Response: If both co-borrowers of a joint consolidation loan apply to separate the joint debt by
checking Item 18 or 19 in Section 4, each individual will receive a new Direct Consolidation Loan for
which that person is solely responsible for repaying in accordance with the terms and conditions of the
combined application and promissory note. Therefore, each co-borrower must separately submit an
application and promissory note. The references listed would be for that individual borrower applying. It
is permissible for both individuals to list the same references.
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No change.

Comments for Section 4

General comments
Section 4 may be more effective with different items and headings that more clearly differentiate
differences between married and divorced applicants. ED is defining three broad buckets for processing
purposes, but borrowers see it from their sets of conditions. It would be helpful if ED provided some
example scenarios within the application sections or within the instructions for completing the
application/promissory note. If there are areas where ED expects discretion for case-by-case
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assessment, that should be communicated overtly, and contact information should be given.
FSA Response: The three categories outlined in Section 4 reflect the three options for applying to
separate a joint consolidation loan that are provided for in the Joint Consolidation Loan Separation
Act. The application and promissory note itself would not be an appropriate place to include sample
scenarios. However, we will consider ways in which the instructions might be expanded to more clearly
explain how the process will work in various circumstances.
Borrowers have concerns about co-borrowers being able to get information on loans, especially in cases
of domestic violence. Both parties should be able to make inquiries without the primary borrower, but
that has historically been a challenge for secondary borrowers, or co-borrowers of the JCL. Could there
be an option for only contacting by mail? Some people don’t want texts and don’t have cell phones,
don’t want to list cell phones.
FSA Response: If both co-borrowers of a joint consolidation loan wish to separate the joint debt into
individual Direct Consolidation Loan, each individual must submit a separate Combined Application to
Separate a Joint Consolidation Loan and Direct Consolidation Loan Promissory Note, and the contact
information provided by each individual on their separate applications will not be shared with the
other individual. Once the joint consolidation loan has been separated and the new individual
consolidation loans have been made, each new consolidation loan will be solely the responsibility of
one individual, and the other co-borrower of the prior joint consolidation loan will have no access to
any information about the new loan.
The form does not specifically require the applicant to provide a cell phone number. It asks for the
phone number at which the applicant can most easily be reached. Further, the instructions state that if
the applicant does not have a phone, they may enter “N/A.”
No change.
Some divorced borrowers believe that there should be a streamlined separation process for divorced
spouses. They are concerned that Section 4 options 18, 19, and 20 are not robust enough to capture JCL
nuances. This section should outline different sections for different situations. Further, the clarification
Is this form for both co-borrowers or must each spouse complete separate forms?
Per ED-2024-SCC-0005-0003_attachment_2.docx, If you are applying jointly with the co-borrower of
your joint consolidation loan by checking Item 18 or 19 in Section 4, then processing will only proceed
with the co-borrower identified in Section 2 has also submitted a Note. References are not consistent
or clearly outlined in the guidance. Parenthetically, the reference to “note,” in ED-2024-SCC-00050003_attachment_2, seems to point to this combined separation and consolidation application.
Reference to “note” rather than “application” adds confusion. Some of these issues and
misunderstandings result from incongruent terms in the instructions and further illustrate that
“combined” is not understood from the beginning.
FSA Response: If each co-borrower of a joint consolidation loan wishes to separate the joint debt (Item

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18 or 19 in Section 4), each individual must complete and submit a separate Combined Application to
Separate a Joint Consolidation Loan and Direct Consolidation Loan Promissory Note. We will consider
options for revising and expanding the instructions to more clearly explain how the process will work.
Could ED or FSA develop a system where one borrower can fill out the application and submit it, and
FSA assigns a case number reference tied to this specific application so that the co-borrower can be
prompted to complete their part? This would facilitate situations of divorce where former spouses live
separate lives in separate parts of the country. In some cases, former spouses may work together to
sever their last bond but may not necessarily want a lot of contact with each other.
FSA Response: This comment does not relate to the information collection.
Some borrowers believe it would be better to conduct this process digitally, akin to IDR recertification.
FSA Response: For the initial implementation of the Joint Consolidation Loan Separation Act, the
Department is limited to providing only a paper application process.
Numbers 19 & 20 cause confusion for divorced couples. What happens if there is no emotional and/or
physical abuse during the relationship, but one party is unwilling to cooperate after the divorce? What
happens if one party refuses to pay their portion of the loan after the divorce and the person applying
for the separation has continued to make the total payments? Because they cannot certify abuse, does
that mean they are unable to separate their loans despite an uncooperative ex-spouse?
FSA Response: This comment does not relate to the information collection. However, we note that it is
not necessary for a joint consolidation loan co-borrower to certify abuse as a condition for submitting an
application to separate the joint debt without the submission of an application by the other coborrower. The applying co-borrower may also certify that they are unable to reach or access the loan
information of the non-applying co-borrower.

Loan apportionment is a pervasive concern under all of section 4.
Item 18. Joint application for proportional separation of a joint consolidation loan.
Married borrowers raised the following concern regarding option 18.
Regarding how loans are apportioned, JCL borrowers’ have legitimate circumstances that work outside
the limited considerations here.
• An amicably married couple files to separate and consolidate using this form. Spouse A took
out only unsubsidized loans. Spouse B took out both subsidized and unsubsidized loans. In
their joint payment strategy, they chose to work towards paying off the amounts of Spouse A's
unsubsidized loans first. A balance remains, but it would be attributed to Spouse B’s loans.

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Under this separation policy, Spouse A is now given a new loan balance derived from their representative
portion of the outstanding balance, which is all Spouse B’s loans.
FSA Response: The proportional separation of the joint debt as described in Section 4, Item 18 reflects
the statutory provisions of the Joint Consolidation Loan Separation Act.
No change.
Divorced borrowers raised the following concern regarding option 18.
• They are unsure if both borrowers are required to apply for separation simultaneously. This may
stem from borrowers’ interpretations of “combined” and the itemized conditions that must be
met for processing, which are not clarified until near the end of the instruction
FSA Response: Item 23.B. in Section 6 of the form clearly explains that if the applicant has checked Item
18 or Item 19 in Section 4, the co-borrower identified in Section 2 must also submit an application and
must check the same option in Section 4.

Item 19. Joint application for separation of a joint consolidation loan based on a divorce
decree, court order, or settlement agreement.
Divorced borrowers raised the following concerns regarding option 19. The following points must be
made for the listed utensils.
• Court-ordered documents from 20 years ago do not accurately reflect current conditions.
o Divorce and resultant resolutions were ill-guided from 2006 forward as joint
consolidation loans ceased to exist statutorily and programmatically. There was no
law governing how these separations should take place. Lawyers didn’t even know
what to do with these loans, and many factors were not considered at the time of
divorce.
o One spouse became a sole earner while the other spouse re-married and had the
income to pay the loan, so the other spouse would not qualify for IBR or other
programs that would have been available to them otherwise.
o Some spouses entitled to child support used those proceeds to pay for student
loans instead of caring for their children.
o Some spouses never received child support but still made regular loan payments,
which was an unnecessary burden on the responsible person who made the
payments.
o 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.
FSA Response: These comments do not relate to the information collection.

Item 20. Separate application for separation of a joint consolidation loan.
Divorced borrowers raised the following concerns regarding option 20.

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•

•

The apportioning of the Direct Consolidation Loan does not provision individuals who
shouldered the loan payments while the former spouse or abuser has not been obligated to
pay. This language is not acceptable to victims of economic abuse who have maintained these
debts alone. The applicants’ new Direct consolidation loan balance for an amount equal to
their portion of the joint consolidation loan critically misses as economic abuse manifested into
the victim making sole payments on the JCL. One DoUsPart! member reported having made
100% of the JCL payments, as a victim of economic abuse. To apportion the new Direct loan as
a proportion of the original borrowed amount adds undue burden to these borrowers.
o An abuse victim has sustained economic abuse through their JCL, where the abusive
and uncooperative ex-spouse has perpetrated economic abuse well past marriage by
paying nothing towards the loan and sometimes not co-applying for Income-Driven
Repayment (IDR), leaving the victim to make sole payments for 15 - 20 years. In this
case, no legal document governing the apportioning of the loan, like a divorce decree,
exists. After separation, the victim, having paid for the last 15 - 20 years, is now given a
new balance that represents a proportion of the remaining balance, and no credit is
given to the victim towards their sole payments towards their loan proper. This
provision favors the abuser, working contrary to the spirit of the law.
ED should consider parsing the remaining debt proportion based on the payment history of
the spouse who has made the payments. In this, there needs to be a place where borrowers
can certify the number of payments they made and get credit. Some borrowers have
commented that an additional option should be a “Separate application for proportional
separation of a joint consolidation loan based on the payment history of the applicant for
equitable distribution of the remaining debt.”

FSA Response: The Joint Consolidation Loan Separation Act 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 coborrower.
No change.
•

Abuse victims are unclear if self-certification is sufficient, or if there are other requirements
to certify that they are victims of economic abuse. It is not clear.
o There may be other repercussions of certifying abuse – children upset that one parent
is claiming abuse to separate a loan
o Does intent need to be defined for this classification, or do we self-certify?

FSA Response: The language in Section 4, Item 20 clearly states that by checking this item, the applicant
certifies that they meet the requirements to apply separately regardless of whether or when the other
co-borrower submits an application to separate the joint debt. Nothing in this language requires the
applicant to provide any supporting documentation. With regard to the concern about the repercussions
of certifying abuse, the information provided by the applicant in this form is not released to children or
other family members.
No change.

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•

The inability to separate these loans individually in divorced situations is unacceptable.

FSA Response: Nothing prohibits the separation of joint consolidation loans in divorce situations.
Divorced joint consolidation loan co-borrowers may apply jointly under Item 18 or Item 19 in Section 4
(each individual must submit a separate application and check the same option), or just one of the
divorced spouses may apply under Item 20, if they certify that they meet the requirements for separate
application.
•

In the third paragraph under option 20, ED has indicated that it will exercise discretion in
determining circumstances that may warrant a borrower to separately apply to separate the
joint consolidation loan. The wording of this statement leaves that latitude severely
understated. Most borrowers who read it, do not even pick up on it. Consequently,
borrowers interpret this option as not robust enough to handle the innumerable nuances
experienced by both victims of abuse and victims of negligent and uncooperative former
spouses. This leads to the following comments and concerns.
o Some divorced borrowers believe that there should be another alternative option to
option 20, a “ Separate application for separation of a joint consolidation loan with a
divorce decree, etc.” Some divorced applicants may need to file separately and have
a divorce decree to support a division differently than option 20 allows. These
borrowers feel they can provide supporting documentation with court orders and
rulings against a former spouse.

FSA Response: The Joint Consolidation Loan Separation Act does not provide for the option outlined
in this comment.
No change.
o

An additional section needs to be added for JCL borrowers who are separated to
apply for separation with credit for the payments they have made.

FSA Response: The Joint Consolidation Loan Separation Act 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 coborrower.
No change.
o
o

Many borrowers want more information in this section, and the wording needs to
be clear on what is required for this section. Some people may be victims of
neglect or circumstance.
if someone was taken advantage of because of their JCL situation, language must
reflect those situations here to cover multiple scenarios. It needs to be flexible
enough to accommodate large numbers of people.

FSA Response: The Joint Consolidation Loan Separation Act has strictly outlined the requirements for
borrowers to apply through the separate application process. The form reflects the statutory
requirements and cannot be modified to cover other circumstances not provided for in the law.

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No change.
•

The language here needs to be shored up. If ED does not want to place parameters
around qualifications it deems worthy of a separate application, then ED should more
overtly recommend that borrowers reach out to see if their circumstances warrant
option 20.

FSA Response: The language in Item 20 reflects the statutory provisions of the Joint
Consolidation Loan Separation Act, which does not describe specific circumstances in which the
Department may authorize a separate application by just one co-borrower other than in
circumstances involving abuse or where the applying co-borrower is unable to reach or access
the loan information of the other individual. It is not possible to specify all such possible
conditions, as these would depend on individual borrower circumstances. A joint consolidation
loan co-borrower who believes that other special circumstances warrant allowing a separate
application should contact the Department.
No change.
•
•

The JCLSA rightfully brings the HEA in alignment with the Reauthorization of the Violence
Against Women Act of 2022. This focuses a predisposition on economic abuse towards
women, but there may be men in this situation as well.
Some borrowers are legitimately concerned about what happens in the case of retribution, if
or when one spouse does not agree.

FSA Response: These comments are not related to the information collection.

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•

The last line does not indicate who is responsible for the debt and accrued interest if only
one person applies.

FSA Response: The last sentence in the second paragraph of Item 20 in Section 4 states that the
non-applying co-borrower will be notified in writing that they are solely responsible for repayment
of the remaining portion of the joint consolidation loan.
No change.

If these loans cannot be justly and timely separated based on the many
nuances of these situations, ED should consider full discharge.
FSA Response: This comment is not based on the information collection.

Comments for Section 5

The form discusses two payment options, but it’s unclear to the applicant that they must complete an
IDR or SAVE application to choose that payment plan. It must be clearly stated and bold that applicants
must complete that form if they do not want to be placed in a standard payment plan. The form may
also provide a link to complete the additional form.
FSA Response: The language in Section 5 clearly states that to apply for an income-driven repayment
(IDR) plan the applicant must go to StudentAid.gov to complete the IDR application online or may
alternatively complete and submit the IDR request form that will accompany the application and
promissory note.
No change.

Comments for Section 6
General Comments
Some borrowers have other loans not part of the JCL, but nothing here addresses this condition. Some
borrowers have Parent Plus loans that are entering repayment. How will these situations be treated?
FSA Response: The option of adding other loans to the new individual consolidation loan is clearly
explained in Section 8, Item 5. With regard to parent PLUS loans entering repayment, these loans could
also be added to the new individual consolidation loan as described in Section 8, Item 5. However, as
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explained in Section 8, Item 10, adding a parent PLUS loan to the consolidation loan would limit access
to IDR plans.
No change.

What happens when a former spouse submits one of these applications fraudulently?
FSA Response: This is not related to the information collection.

Item 23. A.

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Regarding apportionment, this loan contract does not allow for a fair distribution of the
remaining debt for applicants who became the sole payer of the debt after divorce. Essentially
paying back their portion and their former spouse’s portion from 2006, when the program was
abandoned, to now.
FSA Response: The Joint Consolidation Loan Separation Act 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 coborrower.
No change.

Item 23. C.

Again, no provisions for economically abused spouses who were left with the financial burden of the
debt these loans created. Many have paid more than the original amount they borrowed, yet they do
not get credit for these payments in full at separation.
FSA Response: The Joint Consolidation Loan Separation Act 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 coborrower.
No change.

Item 23. D.

Understanding that the NSLDS is the utensil that ED uses for tracking student loans and managing its
consolidation process, what quality assurance does it have in place to assure that FSA and servicers can
adequately report on loans, particularly FFELP loans not held by the federal government? JCL borrowers
16

have suffered the same servicing problems as the broad borrower base; however, JCL borrowers have
been serviced in a procedural, regulatory, and statutory vacuum since program abandonment in 2006.
In a FOIA request dated May 2021 from ED to the Student Borrower Protection Center (SBPC), ED’s
responses shed light on the integrity of the data stored in the NSLDS for joint consolidations, which
consequently has led to gross servicing issues and misinformation extended to JCL borrowers. “In
practice, it is difficult to enforce policy because Joint consolidation loans are not identified as such in
the NSLDS.” Of the seven specific statistics pertaining to JCL loans requested, FSA provided only 3 due
to poor documentation and tracking of JCLs within the NSLDS. Further, a joint consolidation loan in
NSLDS is reported under the name of just one of the co-borrowers. This would explain, in part, why the
co-borrower, who is not the primary on the account, cannot access information regarding their loan. It
also explains why these same co-writers have $0 balances in the FSA system. 1 This deficiency intersects
the comments provided later under Comments for ED-2024-SCC-0005-0002_attachment_1.docx related
to using the Loan Verification Certificate (LVC). This impacts how various borrowers may respond with
concern and comment on the preceding sections. Consider these quotes from JCL borrowers.
• “ I have had limited access with the loan servicer due to security barriers put in place by
my ex-spouse.”
• “Over the years, my ex has had sole control over the loan, and I have been unable to access
any guidance or options, including what repayment plan we are on…”

If these loans cannot be justly and timely separated based on the many
nuances of these situations, ED should consider full discharge.
FSA Response: These comments are not related to the information collection.

Item 23. E.

Regarding the statement, “If the amount ED sends to the joint consolidation loan holder is less than the
amount needed to pay off my portion of the loan, ED will include the remaining amount in my new
Direct Consolidation Loan.” In what instance would ED not send enough money to pay off a JCL
borrower's loan portion?
FSA Response: This language is also included on the regular Direct Consolidation Loan Application and
Promissory Note. It is necessary because in some instances, due to the timing of the payoff or other
reasons, the payoff amount may be less than the amount needed to pay off the loan that is being
consolidated.
No change.

1

Taken from SpousalConsolidation.DoUsPart! Impact Report 2022-2023, Revision 1.1-20230430

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Item 23. G.

What about people who would have qualified for IDR but could not reasonably contact their former
spouse to take advantage of these programs? Many became the sole payer of the debt, and others
defaulted.
Items G, H, and I under Section 6, Item 23 raise many questions about treating JCLs under
existing Executive-driven reforms introduced during the Pandemic Payment Pause.
Once the JCLSA was passed into law in October 2022, ED provisioned accommodations for JCL
borrowers to access some of these reforms like the PSLF Waiver, IDR Adjustment, and PSLF
adjustment. These accommodations acknowledged that the JCLSA was set forth, that the right was
granted to JCL borrowers on October 11, 2022, to request separation from these loans, and that
rightful access was integral for FFEL borrowers’ access to federal benefits, if the borrower so chose.
For FFELP borrowers, this document does not address these provisions. The language, particularly

item I, indicates that qualifying payment counts start over for FFEL borrowers start over for
FFELP borrowers, but not for Federal Direct borrowers.
80% of JCL holders are in FFELP loans. The impact of this on IDR payments or recounts is not clear for
these borrowers. Will payments be made while these loans are held in FFELP loan types count toward
the payment recount? Will these loans be considered for the waivers available to other loan holders
who could consolidate into Direct Loans? JCL holders did not and do not have that ability and should
not be penalized for the department's inability to implement a law that allows consolidation in a Direct
Loan.
If the FFELP IBR/IDR recount will count toward the new Direct Loan, does that mean those repayment
counts will apply toward the PSLF count as well? This is unclear.
Will loan counts be made before the implementation of PSLF count?
Regarding IDR/IBR recount and PSLF, how does DoE plan to ensure the person who qualifies for PSLF gets
the correct count applied to their account when the loans are separated?
FSA Response: These comments do not relate to the information collection. However, we note that the
language on the form reflects the terms and conditions of the Joint Consolidation Loan Separation Act
and the Direct Loan Program regulatory provisions that govern the treatment of payments made on
loans before they were consolidated for purposes of IDR plan loan forgiveness or PSLF. The language on
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the form purposely does not cover the one-time IDR account adjustment, because this is only a
temporary provision.
Some areas are unclear. There’s a lot of text that states, “under certain circumstances,” or “ If you meet
certain conditions;” however, there is no clear language on what qualifies a person for these items. The
ambiguity leaves too much for interpretation and does not allow borrowers to fully understand their
rights.
FSA Response: The phrase “under certain circumstances” appears in one place in the application and
promissory note, in a paragraph that discusses forbearances, and it is followed by two specific
examples of conditions under which a forbearance may be granted without a request from the
borrower. It would not be feasible to list all the many other circumstances under which a forbearance
may be granted without a request.
The phrase “if you meet certain conditions” also appears just one time, in the section that discusses
loan discharge and forgiveness, and this is followed by descriptions of the available types of loan
discharge and forgiveness and the requirements to qualify. There are certain other places where
similar language is used, such as in the explanations of Public Service Loan Forgiveness and Teacher
Loan Forgiveness. It is not necessary to explain all eligibility requirements of these loan forgiveness
programs in detail in the application and promissory note, and it would not be practical to do so. That
information can easily be obtained from other sources, such as the Department’s StudentAid.gov
website or the borrower’s loan servicer.
No change.

Comments for ED-2024-SCC-00050002_attachment_1.docx
The following sections comment on the information provided in the Supporting Statement for Paperwork
Reduction Act Submission.

Comments for Item 2: Use of Information
Understanding that the LVC is the utensil that ED uses for managing its consolidation process, what
quality assurance does it have in place to assure that servicers and holders can adequately report on
loans, particularly FFELP loans not held by the federal government? JCL borrowers have suffered the
same servicing problems as the broad borrower base; however, JCL borrowers have been serviced in a
procedural, regulatory, and statutory vacuum since program abandonment in 2006. Until 2019, the LVC
had no formal data capture for joint consolidations. 2 Since 80% of JCLs fall under FFELP and historically
could not be consolidated to Direct, this utensil and practice have no track record of effective use or
quality assurance.
2

Taken from SpousalConsolidation.DoUsPart! Impact Report 2022-2023, Revision 1.1-20230430

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If servicers cannot accurately track payments or provide master promissory notes, if servicers can go
years without knowing that a given borrower’s loan is a JCL, if loans have lost historical documentation
after being auctioned or purchased and passed from one loan holder to another, how can we be certain
that the LVC is accurate?
How will ED offset the burden to borrowers if they find inconsistencies in the information returned.
Further, how does ED intend to ensure that borrowers are armed with the appropriate knowledge to
properly check the information returned from the LVC as informed borrowers?
This intersects previous concerns itemized for ED-2024-SCC-0005-0003_attachment_1.docx, Section 6,
Item 23. D.

If these loans cannot be justly and timely separated based on the many
nuances of these situations, ED should consider full discharge.
FSA Response: The proposed LVC for use with the Combined Application to Separate a Joint Direct
Consolidation Loan and Direct Consolidation Loan Promissory Note is modeled on the existing LVC that
has been used for regular Direct Consolidation Loans for many years without any significant issues
related to inaccurately reported information. As is explained in Section 6, Item 23.D., a joint
consolidation loan borrower who applies to separate a joint debt into a new individual Direct
Consolidation Loan will receive a notice showing the amount of the joint consolidation loan that will be
included in the new consolidation loan, as verified with the holder of the joint consolidation loan, and
informing the borrower of the deadline by which they must notify the Department if they wish to cancel
their application. Any borrower who believes that the loan amount information in this notice is incorrect
may contact the Department to resolve the issue before the new consolidation loan is made.
No change.
Inquiries can be directed to spousalconsolidation.douspart@gmail.com

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