After years of hard work and compromise between the Department of Education (ED) and the Federal Family Educational Loan Program (FFELP) community, ED announced the approval of the common Consolidation Loan Application and Promissory Note in October 2000.

The common Consolidation Loan Application and Promissory Note provides a single application and promissory note for all FFELP consolidations regardless of lender or guarantor. The new application is an important step in standardizing and simplifying FFELP processes for borrowers, lenders, servicers, schools, and guaranty agencies.

Highlights of Changes
The most conspicuous changes involve forms. Two forms, the Spouse Application and the Consolidation Addendum, have been eliminated. Information from these two old forms is now included on the common Consolidation Loan Application. A new Additional Loan Listing Sheet offers more space for borrowers who have more loans than can fit on the common Consolidation Loan Application. Furthermore, borrowers use the appropriately titled form Request to Add Loans to a Federal Consolidation Loan to add eligible loans during the 180-day add-on period.

Similar to other common forms, the common Consolidation Loan Application provides space for lender, guarantor, or program identification. Also, lenders have the option of providing lender-specific repayment options in addition to the standard, graduated, income-sensitive, and extended payment options. In keeping with the times, the application also provides fields for former names and e-mail addresses.

Comparison Chart
TG has prepared a chart highlighting many of the changes and new features on the Consolidation forms on TG Online at www.tgslc.org/forms/frms_con.cfm. While the chart does not identify every wording change, significant changes and improvements are noted.

Implementation and Transition to New Forms
ED has approved these forms for immediate use. The new forms will replace all previously approved FFELP consolidation loan forms, effective for applications signed by borrowers on or after January 1, 2002.

To download the new consolidation loan forms or to order camera-ready art or diskettes containing the material, visit TG Online at www.tgslc.org under "Schools & Lenders." To order consolidation loan forms by phone, call TG Customer Services at (800) 252-9743, ext. 4546.

Questions
For questions about the new common Consolidation Loan Application and Promissory Note, contact TG Customer Support at (800) 252-9743, ext. 4444, or send an e-mail message to customer.services@tgslc.org.