§ 766.120 Extending maturity date and installment schedule for direct loans with a balloon payment.

(a) At a borrower's written request, the maturity date and installment schedule of a direct term loan with a balloon payment may be extended for up to an additional 8 years from the original maturity date using an addendum to the promissory note when the: (1) Loan was originally amortized for no more than 15 years with a balloon payment scheduled in the final year of the loan; (2) Loan has not received PLS, DBSA, or DSA; (3) Borrower has made all scheduled loan installments in the last 36 months; (4) Balloon payment is due in less than 12 months; (5) Borrower does not have an outstanding DBSA or DSA on any loan; (6) Borrower has not received PLS on any loan in the last 36 months; (7) Borrower has only had equal installments scheduled on any direct term loan in the last 36 months; (8) Borrower's direct loans are fully secured with each loan having a security value of at least 100 percent of the remaining balance of the loan; (9) Borrower is unable to partially or fully graduate; (10) Borrower has acted in good faith; (11) Borrower is not otherwise financially distressed or delinquent; (12) Borrower must pay a portion of the interest due on the loan; and (13) Addendum is signed by the borrower before the original maturity date. (b) In no event may the loan exceed applicable term limits described in this part.