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FAQ: What is the last day a deferment, forbearance, or payment can be applied to an account to bring the account current?

November 9, 2011

As a Direct Loan servicer, Nelnet’s Partner Solutions team receives questions from the school financial aid and borrower community on a regular basis.  In an effort to share the information and educate our school partners, Partner Solutions is posting to its blog some of the more relevant and well-timed questions that we receive.

Q:  With regard to number of days delinquent, what is the last day a deferment, forbearance, or payment can be applied to an account to bring the account current?         

A:  Once a loan reaches 360 days delinquent, no further assistance can be provided.  Federal Student Aid deems the loan defaulted and requires the servicer to load the loan to the Debt Management Collection System, which ACS maintains on behalf of the Department of Education.  FSA has made it very clear that the default status must stand, as the borrower had 359 days to take advantage of any deferment or forbearance eligibility, or to make necessary payment arrangements.


Have more questions?  Please let us know.  We will get them answered for you.

Alan Ishida - Regional Director, Nelnet Partner Solutions (CO, HI, Guam, IA, WI, WV)

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