#	Subject	Summary of Change to Common Manual	Type of Update	Effective Date	
1293	Verbal Forbearance for Defaulted Loans	11.20.B   Documentation Required for Authorized Forbearance
11.20.C   Forbearance Length
11.20.H   Forbearance of Defaulted Loans
11.22     Discretionary Forbearance

States that if a lender grants a verbal request and affirmation of the obligation to repay the debt, the forbearance period is limited to 120 days and cannot be granted consecutively.  The lender must verbally review with the borrower or endorser the terms of the forbearance, including the consequences of interest capitalization, and all other repayment options available to the borrower or endorser.

Also adds information regarding a borrower’s or endorser’s affirmation of the debt.  An affirmation in this case means an acknowledgement of the loan by the borrower or endorser in a legally binding manner.  The form of the affirmation of the debt may include, but is not limited to, one of the following:

•	A new signed repayment agreement or schedule, or another form of signed agreement to repay the debt;

•	A verbal acknowledgment and agreement to repay the debt documented by the lender in the borrower’s or endorser’s file and confirmed by the lender in a notice to the borrower or endorser; or

•	A payment made on the loan.

Further, states that if the lender grants a discretionary forbearance based on a verbal agreement and affirmation of the debt, the lender must record the forbearance terms and the affirmation of the debt in the borrower’s file.  The lender must send, within 30 days of that agreement, a notice to the borrower or endorser confirming the terms of the forbearance agreement and affirmation of the debt as well as information on all other repayment options available to the borrower or endorser.
	Federal	Forbearance granted by the lender on or after July 1, 2014, based on the borrower’s or endorser’s verbal request.  The lender may choose to implement the provision no earlier than November 1, 2013.	

1294	Forbearance Provisions for Borrowers Receiving Department of Defense Student Loan Repayment Benefits	11.24.C   National Service, Loan Forgiveness, Department of Defense Repayment, or Active Military State Duty

States that a lender must grant a mandatory forbearance to a borrower who is performing qualifying service for student loan repayment under 10 U.S.C. 2171, 2173, 2174 or any other student loan repayment program administered by the Department of Defense (DOD).
	Federal	Forbearance granted by the lender for performing service that qualifies a borrower for Department of Defense loan repayment programs as of   July 1, 2014.  A lender may choose to implement the provision no earlier than November 1, 2013.	
1295	Administrative Forbearance for Delinquency before an Authorized Forbearance	11.20.G     Forbearance of Delinquent  
             Loans
Figure 11-2  Forbearance Eligibility Chart
11.21.G     Delinquency before a Deferment 
            or Certain Forbearances 	Federal	Administrative forbearances granted by the lender on or after July 1, 2014, to resolve a delinquency before an authorized period of forbearance.  The lender may choose to implement the provision no earlier than November 1, 2013.

Batch 198