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• written information on his/her loan obligations and information on his/her rights and responsibilities as a borrower;
• a copy of his/her MPN either before or at the time the loan is disbursed;
• a grace period and an explanation of what this means;
• notification, if in the grace period or repayment, no later than 45 days after a lender assigns, sells or transfers the loan to another
lender;
• a disclosure statement, received before beginning to repay his/her loan, that includes information about interest rates, fees, the
balance owed, and a loan repayment schedule;
• deferment or forbearance of repayment for certain defined periods, if he/she qualifies and requests it;
• prepay his/her loan in whole or in part anytime without an early repayment penalty; and
• receive from the lender/servicer documentation when his/her loan is paid in full.
A borrower is responsible for:
• completing exit counseling before leaving school or dropping below half-time enrollment;
• repaying his/her loan according to the repayment schedule even if the he/she does not complete his/her academic program, is
dissatisfied with the education received, or is unable to find employment after graduation;
• notifying his/her lender or loan servicer if he/she
- moves or changes addresses,
- changes telephone numbers,
- changes names,
- changes Social Security numbers, or
- changes employers or his/her employer’s address or telephone number changes,
- is making monthly payments on his/her loan after the grace period ends, unless a deferment or forbearance has been granted;
and
• notifying his/her lender or loan servicer of anything that might alter his/her eligibility for an existing deferment or forbearance.
A borrower should thoroughly read the information, including rights and responsibilities, included as part of the Master Promissory Note.
FEDERAL DIRECT SUBSIDIZED, UNSUBSIDIZED AND PLUS LOAN TERMS AND CONDITIONS
In addition to the information presented earlier, a borrower should be familiar with all the terms and conditions of his/her federal student loans. Review all of the information included with the MPN.
Aggregate Loan Limits: The maximum aggregate debt for an undergraduate student is $31,000 for dependent students and $57,500 for independent students. The aggregate limit is the total of both Direct Subsidized and Unsubsidized Loans. No more than $23,000 of the aggregate limit can be Direct Subsidized Loans.
Origination Fee: A Direct Loan borrower must pay an Origination Fee to the lender to make an educational loan. The amount of the fee varies annually. For current fees, contact the Financial Aid Office or go to www.studentaid.gov.
Interest Rate: Interest is money paid to the lender in exchange for borrowing money. Interest is calculated as a percentage of the unpaid principal amount (loan amount) borrowed. The interest rate changes annually and varies depending on the loan type and the first disbursement date of the loan. For current interest rates, contact the Financial Aid Office or go to www.studentaid.gov.
Grace Period: The grace period is a set period of time after a student graduates, leaves school, or drops below half-time enrollment before he/she must begin repayment on the loan. The grace period gives a student time to get financially settled and to select a repayment plan.
• Direct Subsidized and Unsubsidized Loans have a six-month grace period before payments are due.
• PLUS loans have no grace period. They enter repayment once they are fully disbursed but may be eligible for a
deferment. Repayment: The amount and number of monthly payments depends on
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Catalog Volume 62 -Version 3
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the type of loan a borrower receives,
how much money is borrowed,
the interest rate on the loan, and
the repayment plan the borrower chooses.