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Who needs an OMB 1845-0120 form?
This form is used by the individuals who requested the opportunity to rehabilitate a defaulted direct loan. Sometimes you just can’t pay your monthly payment to the loan holder, and you need to adjust your rate to a more affordable monthly figure. The best solution in this case will be to fill out the Financial Disclosure for reasonable and affordable rehabilitation payments.
What is the Financial Form 1845-0120 for?
This form is used by the loan holder to determine an alternative reasonable monthly payment (based on your financial circumstances). Keep in mind that all statements made on the form should be true and correct, otherwise the applicant may be subject to penalties and imprisonment. The loan holder will return a written rehabilitation agreement to the applicant with a defined monthly rehabilitation payment amount.
Is the 1845-0120 form accompanied by other forms?
The applicant should attach supporting documentation for any income, including pay stubs, letters from the employer, copies of benefits checks or benefits statements, a letter from a court, telephone and internet bills, housing and food bills, medical bills, insurance and transportation bills, etc.
When is the 1845-0120 form due?
Applicants can fill out this form when they have financial problems and cannot pay the required monthly sum of money to the loan holder.
How do I fill out the 1845-0120 form?
While completing the form the borrower has to fill out the following sections:
Identification (SSN, name, address, phone number and e-mail)
Monthly income (employment, support payments, social security benefits, worker’s compensation, public assistance) and monthly expenses (food, housing, utilities, basic communication, medical payments, transportation, dependent care, child/spouse support, student loan payments)
Family size, gross income, spousal identification (SSN and name)
Certifications (borrower signature)
Where do I send the 1845-0120 form?
Once completed and signed, the 1845-0120 form in PDF format should be sent to the loan holder.
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