Federal Stafford Loan Master Promissory Note Page 4
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8Borrower’s Rights and Responsibilities Statement
Important Notice: The Borrower's Rights and Responsibilities Statement provides additional information about the terms and conditions of loans you receive under the Federal
Stafford Loan Master Promissory Note (MPN). Please keep a copy of this statement because it applies to present and subsequent loans received under the MPN. You may contact
your lender at any time for another copy of this statement.
The Federal Family Education Loan Program (FFELP)
1
Federal Stafford Loan Maximums
includes the following loans:
ANNUAL LIMITS
Subsidized Federal Stafford Loan (formerly
DEPENDENT
Subsidized
Total
known as Guaranteed Student Loan [GSL]),
UNDERGRADUATES
2
(Subsidized & Unsubsidized)
3
Unsubsidized Federal Stafford Loan,
First Year
$2,625
$2,625
Federal Insured Student Loan (FISL),
Second Year
$3,500
$3,500
Third Year and Beyond
$5,500
$5,500
Federal Supplemental Loans for Students (SLS), also
INDEPENDENT UNDERGRADUATES
known as ALAS,
(and dependents whose parents are
Federal PLUS (parent) Loan,
unable to borrow under the PLUS program)
Federal Consolidation Loan.
First Year
$2,625
$6,625
Second Year
$3,500
$7,500
The FFELP is authorized by Title IV, Part B of the
Third Year and Beyond
$5,500
$10,500
Higher Education Act of 1965, as amended.
GRADUATE AND
$8,500
$18,500
PROFESSIONAL STUDENTS
1. Governing Law – Loans disbursed under this
AGGREGATE LIMITS
3
Master Promissory Note (MPN) are subject to the
Higher Education Act of 1965, as amended (20 U.S.C.
DEPENDENT
$23,000
$23,000
1070 et seq.), and applicable U. S. Department of
UNDERGRADUATES
Education regulations (collectively referred to as the
INDEPENDENT UNDERGRADUATES
$23,000
$46,000
"Act"). NOTE: Any change to the Act applies to the
(and dependents whose parents are
terms of any loans made on or after the effective
unable to borrow under the PLUS program)
date of the change.
GRADUATE AND
$65,500
$138,500
2. Use of this MPN – I may receive more than one
PROFESSIONAL STUDENTS
loan under this MPN over a period of up to ten years.
1
Certain health professions students may qualify for higher limits.
Whether I may receive loans under this MPN for only
2
All undergraduate annual loan limits are subject to proration.
one academic period, or for multiple academic periods,
3
If the borrower does not have financial need for a subsidized Federal Stafford Loan using expected family contribution (EFC), or has reached the
aggregate limit in subsidized Federal Stafford Loans, the borrower may receive up to and including this entire amount in unsubsidized Federal Stafford
depends on the school I am attending. I may receive
Loans assuming he or she has remaining eligibility for the loan.
loans under this MPN from the original lender, or a
lender who assumes the right to offer loans under this
My academic level (freshman, sophomore, etc.),
for the time period shown on my disclosure statement.
MPN, even if I change my school (provided the school
My status as a dependent student or independent
Authorized expenses include the following:
is authorized to certify subsequent loans under this
student,
Tuition,
MPN) and even if the guaranty agency changes. I must
The length of the academic program in which
sign a new MPN if I wish to receive loans from a lender
Room,
I am enrolled,
other than my original lender, or a lender who assumes
Board,
The length of the remainder of my undergraduate
the right to offer me loans under this MPN.
Institutional fees,
program of study if it is less than one academic
Books,
year, and
3. Subsidized and Unsubsidized Loans – There
Supplies,
As otherwise authorized by the Act.
are two types of Federal Stafford Loans that I may
Equipment,
be eligible for under this MPN: subsidized and
5. Maximum Individual Loan Limits – For each
Dependent child care,
unsubsidized. The subsidized Federal Stafford Loan
academic period, my school determines the
Transportation,
is based on need. If I qualify, the government pays
maximum loan amount I am eligible to receive by
Commuting expenses,
the lender the interest due on my subsidized loans
considering the factors in Section 4 above and other
Rental or purchase of a personal computer,
while I am in school and during grace and deferment
factors such as my Cost of Attendance, Expected
Origination fee and guarantee fee, and/or
periods ("lender" refers to the original lender and its
Family Contribution, and other financial aid awarded
Other documented, authorized costs.
successors, including any subsequent holder of this
to me. If my school awards both subsidized Federal
7. Loan Fees – I may be charged an origination fee and/or
MPN). I am otherwise responsible for interest that
Stafford Loans and unsubsidized Federal Stafford Loans,
accrues on my subsidized loan. The unsubsidized
a guarantee fee for each loan made under this MPN.
it is required to determine my eligibility for a subsidized
Federal Stafford Loan is not based on need. I am
Neither fee may exceed the rate as specified in the Act.
Federal Stafford Loan before determining my eligibility for
responsible for all interest that accrues on my
The amount of these fees will be deducted proportionately
an unsubsidized Federal Stafford Loan.
unsubsidized loans.
from each disbursement.
If I have received student loans from more than one
4. Maximum Program Loan Amounts – Under the
8. Disbursement of Loan Money – Generally,
lender or from other federal student loan programs,
my loan money will be disbursed to my school in
Federal Stafford Loan Program (including both
I am responsible for informing my school and my
subsidized and unsubsidized loans), I may borrow
multiple installments based on the academic terms at
lender of my other student loans. In some cases, I
amounts under this MPN up to and including the
my school. If my school does not have academic
may not be eligible for loans for which I have applied.
dollar amounts shown in the chart on this page
terms, my loan money will generally be disbursed in
(Federal Stafford Loan Maximums).
6. Use of Loan Money – I must use the loan
at least two installments, one at the beginning and
money for authorized educational expenses for
one at the midpoint of my enrollment period for the
I am subject to the limits on these loan amounts on the
attendance at the school that certified my eligibility
applicable loans.
basis of the following:
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