The U.S. Department of Education has issued a request for an extension with change of the information collection for the form used to obtain standardized financial information from borrowers with defaulted Direct Loan (DL) or Federal Family Education Loan (FFEL) Program loans.
This information is used by either the U.S. Department of Education or a guaranty agency to make a determination of a reasonable and affordable monthly loan payment which if made according to the agreed schedule would afford defaulted borrowers an opportunity for loan rehabilitation.
The One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025, made statutory changes that require updates to the 1845-0120 Loan Rehabilitation: Reasonable and Affordable Payments collection. This revision to this information collection package reflect the statutory changes made by the OBBBA for the 2026-27 award year. The Department plans to submit another revision to this form for public comment as soon as practicable to make additional form changes for the requirements that begin in the 2027-28 award year.
Interested persons are invited to submit comments on or before July 6, 2026
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