{"data":{"id":"us/7-cfr-766.120","jurisdiction":"us","citation":"7 CFR 766.120","heading":"Extending maturity date and installment schedule for direct loans with a balloon payment.","body":"(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:\n(1) Loan was originally amortized for no more than 15 years with a balloon payment scheduled in the final year of the loan;\n(2) Loan has not received PLS, DBSA, or DSA;\n(3) Borrower has made all scheduled loan installments in the last 36 months;\n(4) Balloon payment is due in less than 12 months;\n(5) Borrower does not have an outstanding DBSA or DSA on any loan;\n(6) Borrower has not received PLS on any loan in the last 36 months;\n(7) Borrower has only had equal installments scheduled on any direct term loan in the last 36 months;\n(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;\n(9) Borrower is unable to partially or fully graduate;\n(10) Borrower has acted in good faith;\n(11) Borrower is not otherwise financially distressed or delinquent;\n(12) Borrower must pay a portion of the interest due on the loan; and\n(13) Addendum is signed by the borrower before the original maturity date.\n(b) In no event may the loan exceed applicable term limits described in this part.","path":["Title 7—Agriculture","Subtitle B—Regulations of the Department of Agriculture","CHAPTER VII—FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE","SUBCHAPTER D—SPECIAL PROGRAMS","PART 766—DIRECT LOAN SERVICING—SPECIAL","Subpart C—Loan Servicing Programs"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-7.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:01Z","sha256":"f9a159090d882eac4196f8bf19db555271633e300f12396b71b2c11687ff07e4","source_id":"us-cfr","stale":true,"prev":"us/7-cfr-766.116-766.119","next":"us/7-cfr-766.121-766.150"},"notice":"GroundRules: Original legal text. Not legal advice."}