Federal Stafford Loan Master Promissory Note (Page 7 of 8) in pdf

My lender is generally not required to grant a

Collection charges (including attorney fees)

school years, and if I meet all other eligibility

forbearance and may require me to provide my

being assessed against me,

requirements under the Act. If I am in default on a

reasons for the request and other information.

Loss of my professional license,

FFELP loan or a Direct loan, I am not eligible for

An increase in my interest rate,

forgiveness on that loan(s) unless I have made

The lender may grant me a forbearance to eliminate

a delinquency that persists even though I am making

Loss of eligibility for other student aid and

satisfactory repayment arrangements.

scheduled installment payments. My lender may grant

assistance under most federal benefit programs,

If I am a full-time child care provider and I had no

me an administrative forbearance for up to 60 days in

Loss of eligibility for loan deferments,

outstanding balance on a FFELP loan or a Direct loan

order to collect and process documentation

Negative credit reports to credit bureaus, and/or

on October 7, 1998, or I had no outstanding balance

supporting my request for a deferment, forbearance,

My employer withholding part of my wages to

on a FFELP loan on the date I obtained a loan after

give them to my guarantor (administrative wage

October 7, 1998, I may qualify for loan forgiveness

change in repayment plan, or consolidation.

garnishment).

under a demonstration program set forth in the Act.

Circumstances that require my lender to grant me a

I understand that I must meet other eligibility

forbearance include:

19. Credit Bureau Notification – Information

requirements under the Act and that this program

concerning the amount, disbursement, and

requires annual federal funding.

Serving in a medical or dental internship or

repayment status (current or delinquent) of loans will

residency program, if I meet certain criteria.

21. Deferments – Under certain circumstances, I have a

be reported to one or more national credit bureau

Serving in a national service position for which I

right to defer (postpone) repayment. The types of

organizations on a regular basis. If I default on any

receive a national service education award under the

deferments that are available to me depend on when I first

loans made under this MPN, that default also will be

National and Community Service Trust Act of 1993.

obtained a FFELP loan. Upon request, my lender will

reported to all national credit bureaus. Before any

In some cases, the interest that accrues on a qualified

provide me with a deferment application that explains the

guaranty agency reports such a default, I will be given

loan during the service period will be paid by the

eligibility requirements. If I am in default on my loan(s),

at least 30 days notice that default information will be

Corporation for National and Community Service.

I am not eligible for a deferment.

disclosed to the credit bureaus unless I enter into

Qualifying for partial repayment of my loans under

repayment arrangements within 30 days of the date on

If all of my outstanding FFELP loans were made on or

the Student Loan Repayment Program, as

the notice. The guarantor will give me a chance to ask

after July 1, 1993, and when my first FFELP loan was

administered by the Department of Defense.

for a review of the debt(s) before the default is reported.

made on or after July 1, 1993, I had no outstanding FFELP

Qualifying for loan forgiveness under the Teacher

My lender and guarantor must provide a timely

loans that were made before July 1, 1993, a deferment is

Loan Forgiveness Program, if I meet certain criteria

response to a request from any credit organization

available to me while I am:

(for up to five years).

regarding objections I might raise with that organization

Qualifying for loan forgiveness under the Child

Enrolled at least half time at an eligible school,

about the accuracy and completeness of information

Care Provider Loan Forgiveness Program (for up

Engaged in a full-time course of study in a graduate

reported by the lender or guarantor.

to five years).

fellowship program,

Having a monthly debt burden for Title IV loans

20. Special Repayment Arrangements –

Engaged in a full-time rehabilitation training program

that collectively equals or exceeds 20% of my total

A Federal Consolidation Loan Program is available

for individuals with disabilities (if the program is

monthly gross income (for up to three years).

under which I (or my spouse and I jointly) may

approved by the Department of Education),

consolidate (combine) into one debt federal

Conscientiously seeking, but unable to find, full-time

Upon request, my lender will provide me with

education loans received from different lenders and/

employment (for up to three years),

forbearance information and a forbearance

or under different education loan programs.

Experiencing an economic hardship as determined by

request form.

Depending on the amount I borrow, this program

federal law (for up to three years).

may result in an extension of my repayment period.

My lender will process an in-school deferment based on

Repayment information follows

Consolidation permits multiple debts to be combined

(i) my request along with documentation verifying my

into one monthly payment. For additional

eligibility, or (ii) the lender's receipt of a school

information, I should contact my lender or guarantor.

certification of eligibility in connection with a new loan,

Under certain circumstances, military personnel may

or (iii) the lender's receipt of student status information

have their educational loans repaid by the Secretary

indicating that I am enrolled on at least a half-time basis.

of Defense. Questions should be addressed to the

local service recruiter. This is a recruiting program

In all other cases, I must provide my lender with a

and does not pertain to prior service individuals or

deferment request and evidence that verifies my eligibility.

those not eligible for enlistment in the Armed Forces.

If at the time I obtain a loan under this MPN I have an

In addition, volunteers who complete service in an

outstanding FFELP loan disbursed before July 1, 1993,

approved national or community service project can

information on applicable deferment opportunities will be

earn an educational award. The award can be used to

found in my earlier promissory note materials.

repay a Federal Stafford Loan. If I receive an

22. Forbearance – If I am unable to make my scheduled

educational award, I am responsible for providing my

loan payments, the lender may allow me to reduce my

lender with information and documentation regarding

payment amount, to extend the time for making

my term of service and the award.

payments, or to temporarily stop making payments as

If I have no outstanding loan balance on a FFEL or

long as I intend to repay my loan. Allowing me to

Direct Loan Program loan on October 1, 1998, or if I

temporarily delay or reduce loan payments is called a

have no outstanding loan balance on the date I obtain

forbearance. Interest charges continue to accrue during a

a loan after October 1, 1998, I may be eligible for

forbearance period. The lender may grant me a

teacher loan forgiveness. The Department of

forbearance in the following circumstances:

Education will repay a fixed amount of my subsidized

and unsubsidized Federal Stafford Loans if I have

Financial hardship, and/or

worked as a full-time teacher for five consecutive

Illness.

Important Notice: Please retain this statement because it applies to present and subsequent loans received under the Master Promissory Note.

Federal Stafford Loan Master Promissory Note Page 7

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