7 CFR §766.120

1. (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. (1)Loan was originally amortized for no more than 15 years with a balloon payment scheduled in the final year of the loan;
   2. (2)Loan has not received PLS, DBSA, or DSA;
   3. (3)Borrower has made all scheduled loan installments in the last 36 months;
   4. (4)Balloon payment is due in less than 12 months;
   5. (5)Borrower does not have an outstanding DBSA or DSA on any loan;
   6. (6)Borrower has not received PLS on any loan in the last 36 months;
   7. (7)Borrower has only had equal installments scheduled on any direct term loan in the last 36 months;
   8. (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. (9)Borrower is unable to partially or fully graduate;
   10. (10)Borrower has acted in good faith;
   11. (11)Borrower is not otherwise financially distressed or delinquent;
   12. (12)Borrower must pay a portion of the interest due on the loan; and
   13. (13)Addendum is signed by the borrower before the original maturity date.
2. (b)In no event may the loan exceed applicable term limits described in this part.