Federal Stafford Loan Master Promissory Note (Page 5 of 8) in pdf

If I am enrolled in a foreign school, or in a study

loan (for example, the loss of eligibility for an

month and will be more, if necessary, to repay the

abroad program through a school in the U.S. (home

unemployment deferment by obtaining a job).

loan within the required time period. I am only

institution), the disbursement requirements stated

eligible for this plan if (i) at the time I obtain a loan

10. Effect of Loans on Other Student Aid – Federal law

above do not apply and:

under this MPN I have no outstanding balance on

requires that before receiving a Federal Stafford Loan, my

a FFELP loan made before October 7, 1998, and

The loan money may be sent in one installment

school must receive a determination of my Pell Grant

(ii) I accumulate outstanding FFELP Program loans

directly to me, or

eligibility. Also, because an unsubsidized loan is more

exceeding $30,000.

I may provide my foreign school or home institution,

expensive to borrow than a subsidized loan, my school

Income-Sensitive Repayment Plan – If I choose this

as applicable, a written authorization designating an

must determine my subsidized loan eligibility before I am

plan, my monthly payments will be adjusted annually,

individual not affiliated with the foreign school or

offered an unsubsidized loan.

based on my expected total monthly gross income

home institution as my power-of-attorney to negotiate

from all sources. I may call my lender at any time for

11. Grace Period – I will receive a 6-month grace

any loan disbursements on my behalf.

more information about this repayment plan option.

period before the first payment of my Federal Stafford

Loan money may be credited to my account at my

Loan must be made. The grace period begins the day

Under each plan, the number or amount of the

school or disbursed by a check or other means made

after I cease to be enrolled at least half time at an

payments may need to be adjusted to reflect annual

payable to me.

eligible school.

changes in the variable interest rate.

If this is my first student loan under either the Direct

My grace period does not include any period up to 3 years

These repayment plans will be explained in more detail

Loan Program or the FFELP, I must receive entrance

during which I am called or ordered to active duty for

during my exit counseling session. If I do not choose an

counseling before the first disbursement of my

more than 30 days from a reserve component of the

income-sensitive, graduated, or extended repayment

subsidized or unsubsidized Federal Stafford Loan can

Armed Forces of the United States, including the period

plan within 45 days after notification of my repayment

be made.

necessary for me to resume enrollment at the next

choices, or if I choose an income-sensitive repayment

available regular enrollment period.

plan but do not provide the required documentation

9. Change of Status – I must notify my school and/or

within the lender-specified time frame, my lender will

lender of certain changes.

12. Repayment – All of my loans made under this MPN

require that I repay the loan under a standard repayment

must be repaid.

I must notify my school's financial aid office if any

plan. I may change the repayment plan on my loan(s)

of the following events take place:

The repayment period for my loans begins the day after

once a year.

my 6-month grace period ends. My lender will notify me

I reduce my enrollment status to less than half time,

There will be no penalty for prepaying any portion of

of the date my first payment is due.

I withdraw from school,

my loans.

I stop attending classes,

I must make payments on my loans even if I do not

All payments and prepayments may be applied in the

I fail to re-enroll for any term,

receive a bill or repayment notice. Billing information is

following order: late charges, fees, and collection costs

I have a change in my expected graduation date,

sent to me as a convenience, and I am obligated to make

first, outstanding interest second, and outstanding

and/or

payments even if I do not receive any notice. My

principal last.

I change my name, local address, permanent

minimum annual payment required on all my FFELP loans

address, or e-mail address.

will not, unless the lender otherwise agrees, be less than

If I fail to make any part of an installment payment

$600, except as provided in a graduated or income-

within 15 days after it becomes due, I may owe a late

Shortly before my enrollment ends, I must participate

sensitive repayment plan. Notwithstanding the preceding

charge. This charge may not exceed six cents for each

in exit counseling with my school, during which I will

sentence, my minimum annual payment will never

dollar of each late installment.

update my loan records about my:

be less than the amount of interest due and payable.

13. Interest Rates – The interest rate on a Federal

Permanent address,

My repayment period for each loan lasts at least 5 years

Subsidized Stafford Loan and a Federal Unsubsidized

E-mail address,

but may not exceed 10 years (except under an extended

Stafford Loan is a variable rate that is based on a

Telephone number,

repayment plan) from the day after the grace period ends.

formula established in the Act. The interest rate may be

Future employer, and

adjusted each year on July 1. As a result, my interest

References.

I will be given the opportunity to choose one of the

rate may change annually, but it will never exceed

following repayment plans (for the following repayment

I must notify the lender of a particular loan if I fail

8.25 percent. After reviewing the actual interest rate,

plans, the time limits shown do not include periods of

to enroll with respect to such loan:

I may cancel or reduce any loan obtained under this

deferment and forbearance):

MPN in accordance with the "Loan Cancellation"

At least half time for the loan period certified, or

Standard Repayment Plan – Under this plan, I will

section that follows.

At the school that certified my eligibility.

make fixed monthly payments and repay my loan in full

14. Payment of Interest – My lender will, during the

within 10 years (not including periods of deferment or

I must promptly notify my lender(s) if any of the

in-school, grace, and deferment periods and during any

forbearance) from the date the loan entered repayment.

following events occur before loans held by my

period in which I am on active-duty military service,

Payments must be at least $50 a month and will be

lender(s) are repaid:

defer and align principal payments on my outstanding

more, if necessary, to repay the loan within the

FFELP loans. Interest that accrues on all my subsidized

I change my address, telephone number, or e-mail

required time period.

FFELP loans during authorized forbearance periods, and

address

Graduated Repayment Plan – Under this plan, I will

on all my unsubsidized FFELP loans during periods

I change my name (for example, maiden name to

usually make lower monthly payments at first, and my

when I am not making regularly scheduled payments

married name),

payments will increase over time. No single payment

may, unless precluded by the Act, be capitalized (added

I withdraw from school or begin attending less than

will be more than three times greater than any other

to the principal of my loans) — unless I pay the interest

half time,

payment.

as it accrues.

I transfer from one school to another school,

Extended Repayment Plan – Under this plan, I will

I change my employer or my employer's address or

make monthly payments based on fixed annual or

Except for interest charges the federal government

telephone number changes, and/or

graduated repayment amounts over a period not to

pays on my behalf for subsidized Federal Stafford

I have any other change in status that would affect my

exceed 25 years. Payments must be at least $50 a

Federal Stafford Loan Master Promissory Note Page 5

Related Articles

Related forms

Related Categories