General Documentation Requirements
The lender/servicer must include the documentation listed in this section with each claim file it submits to ISAC. If the borrower’s file contains more than one of any document, all of the originals (or copies if the original is not available) should be included and grouped together. The lender also should group all claim files together by claim type (i.e., default, bankruptcy, etc.).
Note: Lenders/servicers assigned a Program Review Status should contact ISAC for additional claim documentation information.
For more detailed information regarding claim filing documentation, including the requirements for Closed School, False Certification and Unpaid Refund Discharges, see the Common Manual.
Each claim file must contain the following documentation, as applicable. The documents should be arranged in the following order and according to the specified guidelines:
- Claim Form - Lenders must use the Claim Form when filing a claim. All data noted in the instructions accompanying the form must be provided. This data includes an accurate and legible record of the collection history.
- Application and Promissory Note - The lender must submit the application, if a separate loan application was provided to the lender. The lender must also submit the original promissory note, or a true and exact copy of the promissory note, with any signed promissory note addenda. If the guarantor retains the application or promissory note on the lender’s behalf, the lender is expected to submit only the imaged copy of the document that it receives from the guarantor or a facsimile of the document. In some cases, an indemnification agreement will be accepted if a lender is unable to provide required documentation for claim filing.
- Cure Documentation - If the loan’s guarantee is lost and subsequently reinstated, the lender/servicer must include in any claim filed subsequent to the reinstatement the curing instrument or a legible copy of the curing instrument. Examples of a curing instrument include a new repayment agreement signed by the borrower or a copy of a payment. In the case of an intensive collection activities (ICA)/location cure, the claim file must include acceptable evidence that the borrower has been located.
Additional Documentation Requirements
For a bankruptcy claim, the lender must also submit notification of the bankruptcy filing, such as the Notice of the First Meeting of Creditors or other proof of filing directly received from the borrower’s attorney, the bankruptcy court, or from another source. In addition, the lender must submit a copy of the proof of claim filed by the lender (if required – which ISAC does not require); an original assignment of the proof of claim, if required; and all other pertinent documents sent to or received from the bankruptcy court.
For a death claim, the lender must also submit an original or certified copy of the death certificate. In the event of an exceptional circumstance and on a case-by-case basis, the lender must submit other reliable documentation approved by the guarantor’s CEO.
For a total and permanent disability claim, the lender must also submit a completed Physician’s Certification of Borrower’s Total and Permanent Disability, a common Temporary or Permanent Total Disability Certification Request Form, or other forms approved by the U.S. Department of Education (such as a common deferment form) and a record of any payments received after the date, certified by the physician, that the borrower became unable to work and earn money.