Fillable Master Promissory Note Template Direct Plus Loans (Page 13 of 15) in pdf

William D. Ford Federal Direct Loan Program

Direct PLUS Loan Borrower's Rights and Responsibilities Statement

You may be eligible to receive additional deferments if, at the time you received

To request a forbearance, contact your servicer. Your servicer can explain the

your first Direct Loan, you had an outstanding balance on a loan made under

eligibility and documentation requirements for the type of forbearance you are

the FFEL Program before July 1, 1993. If you meet this requirement, contact your

requesting. You may also obtain information on forbearance eligibility requirements

servicer for information about additional deferments that may be available.

from your servicer's web site.

You may receive a deferment while you are enrolled in school on at least a half-

Under certain circumstances, we may also give you a forbearance without requiring

time basis (and, if you are a graduate or professional student, during the 6-

you to submit a request or documentation. These circumstances include, but are not

month period after you cease to be enrolled at least half-time) if:

limited to, the following:

•

You submit a deferment request to your servicer along with

•

Periods necessary for us to determine your eligibility for a loan discharge;

documentation of your eligibility for the deferment, or

•

Your servicer receives information from the school you are attending that

•

A period of up to 60 days in order for us to collect and process documentation

indicates you are enrolled at least half-time.

related to your request for a deferment, forbearance, change in repayment plan,

or consolidation loan (we do not capitalize the interest that is charged during

If your servicer processes a deferment based on information received from your

school, you will be notified of the deferment and will have the option of

this period);

canceling the deferment and continuing to make payments on your loan.

•

Periods when you are involved in a military mobilization, or a local or national

For all other deferments, you (or, for a deferment based on active duty military

emergency; or

service or qualifying National Guard duty during a war or other military

•

Periods necessary to align repayment of Direct PLUS Loans that do not qualify

operation or national emergency, a representative acting on your behalf) must

for a 6-month post-enrollment deferment with other Direct PLUS Loans that

submit a deferment request to your servicer, along with documentation of your

qualify for this deferment, or with Direct Subsidized Loans and Direct

eligibility for the deferment. In certain circumstances, you may not be required

Unsubsidized Loans that have a grace period. Contact your servicer for more

to provide documentation of your eligibility if your servicer confirms that you

information.

have been granted the same deferment for the same period of time on a FFEL

Program loan. Your servicer can provide you with a deferment request form that

You are responsible for paying the interest on a Direct PLUS Loan during a period of

explains the eligibility and documentation requirements for the type of

forbearance.

deferment you are requesting. You may also obtain deferment request forms

and information on deferment eligibility requirements from your servicer's web

NOTE TO ENDORSER

You may request a forbearance.

site.

If you are in default on your loan, you are not eligible for a deferment.

22. DISCHARGE (HAVING YOUR LOAN FORGIVEN)

You are responsible for paying the interest on a Direct PLUS Loan during a

Death, bankruptcy, and total and permanent disability

period of deferment.

We will discharge (forgive) your loan if:

NOTE TO ENDORSER

You are not eligible to receive a deferment.

•

You die, or the child on whose behalf you obtained a Direct PLUS Loan dies.

Your servicer must receive acceptable documentation (as defined in the Act) of

Forbearance

your death or the child's death.

We may give you a forbearance if you are temporarily unable to make your

•

Your loan is discharged in bankruptcy after you have proven to the bankruptcy

scheduled loan payments for reasons including, but not limited to, financial

court that repaying the loan would cause undue hardship. Direct Loans are not

hardship and illness.

automatically discharged if you file for bankruptcy.

We will give you a forbearance if:

•

You are serving in a medical or dental internship or residency program,

•

You become totally and permanently disabled (as defined in the Act) and meet

and you meet specific requirements;

certain other requirements.

•

The total amount you owe each month for all of the student loans you

School closure, false certification, identity theft, and unpaid refund

received under Title IV of the Act (Direct Loan Program loans, FFEL

In certain cases, we may also discharge all or a portion of your loan if:

Program loans, and Federal Perkins Loans) is 20% or more of your total

•

You (or the child on whose behalf you obtained a Direct PLUS Loan) could not

monthly gross income (for a maximum of three years);

complete a program of study because the school closed;

•

You are serving in a national service position for which you receive a

•

Your loan eligibility was falsely certified by the school;

national service education award under the National and Community

Service Trust Act of 1993. In some cases, the interest that accrues on a

•

A loan in your name was falsely certified as a result of a crime of identity theft; or

qualified loan during the service period will be paid by the Corporation for

•

The school did not pay a refund of your loan money that it was required to pay

National and Community Service;

under federal regulations.

•

You qualify for partial repayment of your loans under a student loan

repayment program administered by the Department of Defense; or

•

You are called to active duty in the U.S. Armed Forces.

Page 13 of 15

Master Promissory Note Template Direct Plus Loans Page 13

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