The Department may consider forbearance on a loan, but will
only consider forbearance if the borrower is current on its loan payments and
is in compliance with the terms of its loan documents.
(1) If a borrower is requesting forbearance
for its loan, this loan must be current and in good standing, and have no late
charges outstanding, up to and including the date the forbearance documents are
(2) A borrower must request
forbearance in writing. The request must include a detailed explanation of the
reason for the forbearance request including information and documentation that
demonstrates the need for the forbearance.
(3) When considering a request for
forbearance, the Department may require that the borrower submit information it
deems necessary to evaluate the request, such as financial statements,
collateral information and valuation.
(4) The borrower will, within thirty days of
its request, be notified in writing whether or not the Department agrees to the
loan forbearance request.
Department will only approve a forbearance request from a borrower who has
submitted a written plan demonstrating that the temporary suspension or
reduction of loan payments will significantly increase the likelihood of full
(6) The Department
may extend a forbearance agreement beyond the initial forbearance period, if
the circumstances, in the Department's sole discretion, justify such an
requesting forbearance must pay the Department a loan servicing fee that is
calculated on the basis of the borrower's payment amount and loan balance.
Additional charges may be made for items listed in OAR 330-110-0055
charges will be estimated or itemized for the borrower before they are
(8) Approval of a
forbearance request will not reduce the borrower's liability to the Department
for the loan.