1845 0120 Form – Fill Out and Use This PDF

1845 0120 PDF Details

OMB No. 1845-0120 is issued by the U.S. Department of Education and covers two federal loan programs: the William D. Ford Federal Direct Loan (Direct Loan) Program and the Federal Family Education Loan (FFEL) Program. Borrowers who have defaulted on federal student loans can use this form to provide monthly income and expense details and request a payment amount below the standard 15% of discretionary income formula. Completing this form accurately is essential because anyone who knowingly provides false information may face legal penalties including fines or imprisonment.

What Information Does the 1845 0120 Form Require?

The form collects data across four main areas:

• Monthly income: employment income, spousal income, child support payments, and any other income sources
• Monthly expenses: housing, utilities, food, transportation, and necessary medical costs
• Family size: the number of people in your household, including you, your spouse, and any dependents
• Spouse information: the form may require a spousal signature when applicable

How Does the Loan Rehabilitation Process Work?

After submitting the completed 1845 0120 form, your loan holder reviews your income and expense information and calculates a reasonable and affordable payment amount. The rehabilitation process requires nine consecutive on-time monthly payments within a 10-month period. Successful completion removes the default status from your credit report and restores your eligibility for income-driven repayment plans and future federal financial aid.

Frequently Asked Questions About OMB 1845-0120

Who should use the 1845 0120 form?
Any borrower with defaulted federal student loans who believes the standard 15% payment is unaffordable. The form applies to both Direct Loans and FFEL Program loans.

What happens after I submit the form?
Your loan holder will review your income and expense details and propose a monthly payment amount. You must then make nine on-time payments over 10 months to complete rehabilitation.

Will loan rehabilitation remove the default from my credit report?
Yes. Successful rehabilitation removes the default notation from your credit history, though the record of late payments remains.

Explore these related forms: the income and expense statement, the borrower authorization form, the teacher loan forgiveness application, and the loan agreement template.