Or. Admin. R. 330-110-0047 - Loan Forbearance

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 signed.

(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.

(5) The 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 loan repayment.

(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 extension.

(7) A borrower 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(4). Such charges will be estimated or itemized for the borrower before they are incurred.

(8) Approval of a forbearance request will not reduce the borrower's liability to the Department for the loan.

Notes

Or. Admin. R. 330-110-0047

DOE 13-2012, f. & cert. ef. 12-20-12

Stat. Auth.: ORS 469.040 & 470.080, 470.140

Stats. Implemented: ORS 470.050 & 470.815