New IBR Forms Available
On June 17, the Department of Education (ED) announced approval of two new IBR forms for FFELP loans.
The IBR Plan Request form allows FFELP borrowers to submit the information required for loan holders to determine their eligibility for the IBR Plan and calculate their monthly payment amount.
You can distribute the new IBR Plan Request form starting July 1, 2010, the effective date of the revised definition of “partial financial hardship.” Current IBR processing methods may remain in effect; however, requests received after July 1 must be evaluated based on this revised definition.
The IBR Plan Alternative Documentation of Income form allows FFELP borrowers to report alternative sources of income to loan holders when their adjusted gross income (AGI) is either unavailable or doesn’t reasonably reflect their current income.
You can distribute the new IBR Plan Alternative Documentation of Income form immediately; however, per ED guidance, the revised definition of “partial financial hardship” does not go into effect until July 1. Borrowers may continue to use current methods of documenting income.
We’ll continue to keep you informed and we encourage you to send us your questions about IBR. Contact our Policy, Compliance and Training department at 405.234.4432 or email@example.com for more information.