Federal Direct Loan Program Regulations for Forbearance and Loan Rehabilitation

This information collection for the Direct Loan (DL) Program is related to regulations for dealing with defaulted loans and forbearance in §685.205 and reasonable and affordable loan rehabilitation in §685.211. We are requesting an extension of the current burden calculated for this information collection. These regulations provide additional flexibilities for Direct Loan borrowers and permit oral requests for forbearance, as well as allow a borrower to object to the initially established reasonable and affordable loan repayment amount. In addition, if a borrower incurs changes to his or her financial circumstances, the borrower can provide supporting documentation to change the amount of the reasonable and affordable loan monthly repayment amount. There has been no change to the regulatory language.

The latest form for Federal Direct Loan Program Regulations for Forbearance and Loan Rehabilitation expires 2023-01-31 and can be found here.